The Michigan-based ice cream flavourings producer Denali Flavors has acquired the Wisconsin ingredient manufacturing unit of the Canadian group CoolBrands International.

The acquisition of the 65,000-square-foot facility near Milwaukee signals a strategic move at Denali towards achieving greater consolidation and new capabilities in its ingredient production operations, Denali said.

The addition of the Wisconsin unit, which generated sales of around US$20m last year, will nearly double Denali's overall business, Denali added. It will operate as Denali Ingredients and will serve the North American dairy sector. Denali says it plans to invest in the plant in the near term and expand its current workforce of 31.

"As we look to the future, the development of a more integrated approach to ice cream creation and production represents the next strategic step in our growth," said Denali president Neal Glaeser. "At a time of increasing consolidation in the dairy industry, bringing an ingredient manufacturing capability in-house not only provides more control from a quality and supply standpoint, it also allows us to expand our product line of innovative products. We expect to bring more winning flavours to our partners and consumers as a result."