Canada-based Agropur Cooperative has agreed to purchase Northumberland Dairy Cooperative's dairy and food distribution assets.
The transaction, which is subject to certain regulatory approvals and other customary closing conditions, includes the Miramichi plant in New Brunswick which processes 27 million liters of milk annually.
As per the agreed terms, Agropur will also acquire Northumberland's distribution centers and its brands. However, Northumberland will retain its hardware and building supply operations.
Agropur CEO Robert Coallier said that the dairy industry is increasingly competitive both locally and globally.
"The cooperative movement needs to consolidate in order to stay competitive and remain an important player in dairy processing. This agreement will help us maintain our position as an industry leader and enhance our ability to serve our customers coast to coast," added Coallier.
Northumberland's assets that are to be acquired have annual sales totaling $67m.
