Canadian co-op buys Davisco Foods
Agropur, Canada’s largest dairy cooperative, is buying the dairy processing assets of Davisco Foods International, a U.S.-based cheese and dairy ingredients company.
Davisco owns three processing plants, including one in Jerome, Idaho.
The acquisition is targeted to close Aug. 1, according to a press release from Agropur, headquartered in Longueuil, Quebec.
The transaction will double Agropur’s U.S. processing operations and will increase its global milk intake by 50 percent. It will also strengthen its position in the North American and international dairy industries, Agropur stated in the release.
“With over $1 billion in annual sales, this acquisition is by far the largest transaction in Agropur 76 year history,” Serge Riendeau, president of Agropur, said in the release.
The transaction, combined with the most recent ones in Canada, will increase Agropur’s sales to over $5.4 billion on an annualized basis, and the company should reach 12.1 billion pounds of milk processed each year in 41 plants across North America, the press release stated.
As a result of this acquisition, the U.S. operations of Agropur should reach the top five cheese and ingredients processors in the United States, the company stated.
“The world dairy industry is consolidating at an accelerated pace and our acquisition of Davisco supports our objective of increasing our global presence,” Agropur CEO Robert Coallier said in the release.
“I am excited about this opportunity and what it affords our suppliers, customers and most importantly, our employees,” Davisco CEO Jon Davis said in the release.
“Davisco and Agropur have built, over 70 years, very similar cultures. Along with all of Davisco’s management team, I look forward to becoming part of the Agropur family and I am very excited about what the future holds,” he said.
Headquartered in Le Sueur, Minn., Davisco processes 3.8 billion pounds of milk and produces more than 375 million pound of cheese and 180 million pounds of whey ingredients annually and has 900 employees.
The acquisition includes three Davisco cheese processing factories in Le Sueur, Minn., Jerome, Idaho, and Lake Norden. S.D. It also includes an ingredients plant in Nicollet, Minn., a cheese shop in Le Sueur, and sales offices in the U.S. and abroad.