Agropur, Canada’s largest dairy group, has continued its spate of M&A activity by agreeing to buy American dairy company Davisco International, Food Business News reports.
The terms of the acquisition, although not fully disclosed, include Davisco three cheese processing factories in Le Sueur, Minn. Jerome, Idaho, and Lake Norden, S.D., and also an ingredients plant in Nicollet, Minn, the company said.
Agropur President Serge Riendeau said “With over $1 billion in annual sales, this acquisition is by far the largest transaction in Agropur’s 76-year history. This transaction, combined with the most recent ones in Canada, will increase our sales to over C$5.8 billion ($5.4 billion) on an annualized basis, and we should reach 5.3 billion liters (12.1 billion lbs) of milk processed each year in 41 plants across North America. 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 to even better serve its clients”.
Rober Coallier, CEO of Agropur, said: “The world dairy industry is consolidating at an accelerated pace, and our acquisition of Davisco supports our objective of increasing our global presence”, continuing: “One of our key business objectives is to pursue strategic acquisitions to diversify our geographic markets and product portfolios”.
Source: Food Business News