Canada-based Agropur Cooperative has entered into an agreement with Northumberland Dairy Cooperative to acquire Northumberland's dairy and food distribution assets for undisclosed sum.
Under the transaction, Agropur will acquire the Miramichi facility, New Brunswick, which processes 27 million litres of milk per annum, Northumberland's distribution centres and its brands while Northumberland will retain its hardware and building supply operations.
The acquired operations have annual sales totaling $67 million, according to Agropur.
Agropur president Serge Riendeau said both the hardware and dairy operations will remain in the hands of cooperatives, a strong economic model that supports community economic development wherever it is present.
"Agropur plans to maintain its commitment to New Brunswick and the Miramichi area in particular," Riendeau added.
Agropur CEO Robert Coallier said the dairy industry is increasingly competitive in Canada and around the world.
"The cooperative movement needs to consolidate in order to stay competitive and remain an important player in dairy processing," Coallier added.
"This agreement will help us maintain our position as an industry leader and enhance our ability to serve our customers coast to coast."
The deal is subject to Northumberland members' approval as well as usual regulatory and other customary approvals.
