Dairy Farmers of America (DFA), the US co-op, is to acquire a facility owned by Canadian peer Agropur in St Paul, Minnesota.

DFA said the acquisition will expand the farmer-owned cooperative’s extended shelf-life capabilities and introduce aseptic processing into its business portfolio.

Pat Panko, senior vice president and chief operating officer for DFA’s fluid milk and ice cream division, said: “This acquisition offers an opportunity to grow our customer base while strengthening our processing capabilities for existing customers and diversifies our product portfolio.” 

Doug Simon, president of Agropur, said: “DFA is a tremendous organisation with strong cultural and business ideations that marry well with those of Agropur’s cooperative roots. 

“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. “

The facility manufactures a variety of fresh, extended shelf-life and aseptic dairy products for well-known grocery store chains and organic milk brands. 

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Employees will retain their current positions following the change of ownership of the facility and the existing management team will continue to manage all day-to-day operations, including customer relationships, milk procurement and production.

The financial details of the transaction were not disclosed.

In September, Agropur announced the closure of its Saint-Damase plant in Quebec with some 110 employees affected by the move.