US farmer-owned cooperative Land O'Lakes has acquired premium chilled dessert maker Kozy Shack Enterprises.
The company said the acquisition was a "good strategic fit" that complimented its existing branded dairy business.
Land O'Lakes has been increasing its focus on branded and value-added products as it looks to maximise farmer returns. The group recently announced a merger of its egg operations with Eggland Best and the firm has looked to develop a number of new value-added products.
The acquisition of Kozy Shack increases Land O'Lakes branded portfolio and expands its product line-up. Through the acquisition of Kozy, Land O'Lakes is entering the chilled dessert category for the first time.
Land O'Lakes Announces Definitive Agreement to Purchase Kozy Shack Enterprises
ARDEN HILLS, Minn., July 10, 2012 -- Land O'Lakes, Inc. today announced it has signed an agreement to acquire Kozy Shack Enterprises, Inc., a market leader in the chilled dairy desserts category in North America.
Land O'Lakes President and CEO Chris Policinski said, "Kozy Shack is a strong strategic fit with our value-added dairy foods product portfolio. This long-time company - known for its strong brand and reputation for quality -- opens the door for Land O'Lakes to achieve future growth in the attractive dairy dessert category."
Kozy Shack President and Chief Executive Officer Robert Striano said, "It is exciting for the 40-plus year-old Kozy Shack brand to be infused with expanded resources and brand-building focus. The future is bright for the Kozy Shack business as a strategic brand within the Land O'Lakes portfolio."
Terms of the acquisition were not disclosed. The transaction is subject to customary closing conditions. The deal is expected to close on July 31.
Kozy Shack, based in New York, was founded by Vincent Gruppuso more than 40 years ago, and has remained a family-owned company. Kozy Shack is a leading manufacturer and marketer of premium dessert products in the U.S. and Canada, and has a presence in Ireland for European customers. Production facilities are located in Hicksville, NY, Turlock, CA, and Lough Egish, Ireland (60 miles north of Dublin). The company also owns and operates a logistics services company, Freshway Distributors.
According to Policinski, the acquisition of Kozy Shack offers several benefits for Land O'Lakes. "The acquisition of Kozy Shack represents a new category for the cooperative - refrigerated desserts - which enables us to provide our retail customers with an even wider selection of premium dairy food products."
Policinski noted that Land O'Lakes will apply its extensive sales, marketing, distribution and customer service expertise to expand sales of Kozy Shack products.
In addition, the simple ingredients in Kozy Shack desserts reflect the same focus on quality, wholesome ingredients and products that has been the hallmark of Land O'Lakes throughout its 90-year history.
"We're looking forward to the addition of Kozy Shack to our portfolio," Policinski added. "The company is comprised of great people, first-rate production facilities, and products that exceed the consumer's expectation for quality. This makes Kozy Shack a perfect fit for Land O'Lakes."
