CANADA: Agropur announces merger with Dairytown Products
Agropur has announced a merger proposition with Dairytown Products
Dairy giant Agropur Cooperative and Dairytown Products have proposed a merger of the companies.
Agropur Cooperative said the decision was indicative of its desire to keep dairy processing assets "in the hands of producers wherever possible".
"It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada," said Serge Riendeau, president of Agropur Cooperative.
Beneficiaries of Dairytown Products, which supplies dairy products and ingredients to the retail and food service industries, will be asked to vote on the propsed merger.
Subject to due diligence review and Competition Bureau authorisations, the two organisations should reach a final agreement in a few weeks.
"This is excellent news for both our organisations. Our respective vision and values gave us the opportunity to reach this agreement. This will allow the producers of both organisations to benefit from the advantages of being part of a large national cooperative, and to better serve customers across the country," declared Dairytown Products chairman, Jim Walker.
SUSSEX, NB and LONGUEUIL, QC, March 27, 2014 /CNW Telbec/ - The Boards of directors of Dairytown Products Ltd. and Agropur Cooperative announced today that they have concluded an agreement in principle to merge the two organizations.
"This is excellent news for both our organizations. Our respective vision and values gave us the opportunity to reach this agreement. This will allow the producers of both organizations to benefit from the advantages of being part of a large national cooperative, and to better serve customers across the country," declared Dairytown Products Ltd. Chairman, Jim Walker.
"This agreement is consistent with our desire to keep dairy processing assets in the hands of producers wherever possible," said Serge Riendeau, President of Agropur Cooperative. "It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada," he added.
The two organizations should reach a final agreement within the next few weeks.
The Dairytown beneficiaries will be asked to vote on the proposed merger.
The transaction is subject to final approval after conducting a due diligence review and obtaining the usual authorizations, including those of the Competition Bureau and other competent authorities.
About Dairytown Products Ltd.
Strategically located at the heart of New Brunswick's dairy farming community and with close access to central Canada and northeast United States, Dairytown Products is a world-class supplier of butter, skim milk powder and custom milk powder blends. As a specialized supplier of dairy products and ingredients to the retail, food service and further processing trades, the company has earned an industry reputation for products of uncompromising quality and functional performance. It employs 189 people and has 207 beneficiaries, all of whom are New Brunswick dairy producers.
Founded in 1938, Agropur is an important player in the North American dairy industry. With sales of more than $3.8 billion, the Cooperative is a source of pride for its 3,348 dairy producer owners and 6,300 employees. Agropur processes more than 3.3 billion litres of milk per year in its 31 plants across North America and boasts an impressive line of products that includes brands such as Natrel, Québon, OKA, iögo and Olympic (joint venture with Ultima Foods), Farmers, Agropur Signature cheese, Central Dairies, Agropur Grand Cheddar, Sealtest and Island Farms.
Original source: Agropur
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