US firm Hiland Dairy Foods is to buy manufacturing assets from local grocer Brookshire Grocery Co., a joint statement from the two companies has revealed.

The move will see Hiland acquire the ice cream, dairy and water manufacturing assets as part of its expansion efforts. 

Gary Aggus, CEO of Hiland Dairy, explained the acquisition aligns with Hiland’s expansion into Texas that began five years ago when the company started supplying dairy products to select markets.

“Our history and commitment to economic development in the communities we serve is strong. In that spirit, we are committed to growing these facilities in Tyler by investing capital dollars to expand our production capabilities,” said Aggus.

Brad Brookshire, CEO of Brookshire Grocery Co., said the decision “made sense on a number of levels”.

“Our main business focus has always been on our retail stores, which our manufacturing plants support. But with an abundant offering of quality products now available through the supplier community, we were certainly interested when Hiland approached us about buying these plants. 

“The assurance from Hiland that they will retain the employees, supply our stores with the same great products and expand the operations at these plants in Tyler confirmed to us that this would be beneficial for the community, employees and both companies.”

The deal is expected to close in March 2017.