After an agreement between the two boards of directors, Agropur Cooperative and Dairytown Products Ltd (a regional, butter, skim milk powder and milk power blends processor) are set to become one company.
According to Agropur, the company, which was founded in 1938, has sales of more than $3.8 billion, and 6,300 employees. It processes more than 3.3 billion litres of milk per year in its 31 plants across North America. Meanwhile Dairytown is a supplier of butter, skim milk powder and custom milk powder blends. It employs 189 people and has 207 beneficiaries, all of whom are New Brunswick dairy producers.
Speaking of the merger, Serge Riendeau, president of Agropur Cooperative, said: “This agreement is consistent with our desire to keep dairy processing assets in the hands of producers wherever possible.” He went on to add: “It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada.”
According to Food Business News, the companies should reach a final merger agreement in the next few weeks, which, once finalised, will be voted on by Dairytown’s investors.
Source: Agropur / Food Business News