Dairy Farmers of America (DFA), Kansas City, Kan., and Agropur said they entered into an agreement for DFA to acquire Agropur’s St. Paul, Minn., facility. The acquisition by DFA, which is subject to satisfaction of customary closing conditions, will expand the farmer-owned cooperative’s extended-shelf-life capabilities and introduce aseptic processing into its business portfolio.

“This acquisition offers an opportunity to grow our customer base while strengthening our processing capabilities for existing customers and diversifies our product portfolio,” said Pat Panko, senior vice president and chief operating officer for DFA’s Fluid Milk and Ice Cream Division.

The facility manufactures a variety of fresh, extended-shelf-life and aseptic dairy products for well-known grocery store chains and organic milk brands, the companies said. Employees will retain their current positions. In addition, the existing management team will continue to manage all day-to-day operations, including customer relationships, milk procurement and production. The transaction is expected to close in early January.

“DFA is a tremendous organization with strong cultural and business ideations that marry well with those of Agropur’s cooperative roots,” said Doug Simon, president of Agropur Inc., a wholly owned subsidiary of Agropur Cooperative, Saint-Hubert, Quebec. “Our focus has been and will always be meeting the needs of our customers and being strategic in our investments toward complementary growth areas. This transaction is well aligned with long-term strategic plans for both parties."