Arla Foods has agreed to acquire Swedish cheese company Falbygdens from food company Atria Scandinavia.
The move is in line with the the company's strategy to boost its cheese business in Sweden, as well as globally.
Falbygdens has operations in Falkping, where it matures and processes cheese by flavouring and packaging.
It buys its cheese from other manufacturers and generates SEK 470m ($65.4m) in sales annually, by employing around 100 people.
The acquisition, which is subject to approval from the Swedish Competition Authority, will be completed in January 2015.
Arla Foods Sweden executive vice president Henri de Sauvage said: "Through its acquisition, Arla is further securing that it is adding value to its farmer-owner milk and this it continues to be profitable.
"Employees at Falbygdens Ost have considerable experience in working with cheese, along with strong channels for sales of premium cheese.
"With Arla's expertise in innovation and production, along with its marketing and sales channels, we can work together to develop the passion for and interest in cheese of both customers and consumers."
The financial terms of the transaction are not disclosed.
