Canadian food retailer Sobeys has agreed to sell its dairy processing operations to Agropur Cooperative, in a deal worth $356m.
A strategic partnership agreement to this effect has been concluded by both the companies.
Agropur CEO Robert Coallier said that the transaction is in line with the company's growth strategy and will allow it to better serve its customers and consumers from coast to coast.
"Thanks to the business related to these assets and the renewal of certain contracts, the acquisition of the plants represents revenues totalling over $400 million and sees us accelerate our growth in the Canadian market," added Coallier.
The transaction, which is subject to usual regulatory approvals, includes the sale of two plants in Edmonton, one in Winnipeg and one more in Burnaby, British Columbia.
The scope of the agreement also includes the licensing of the Lucerne trademark to Agropur for the production and distribution of fluid milk and cream.
Sobeys' dairy process more than 160 million liters of milk annually.
