Montreal, Que. – Milk and dairy producer Saputo Inc. is acquiring the fluid milk activities of Scotsburn, N.S.-based Scotsburn Co-operative Services Ltd. for $61 million.
The move will allow Saputo to increase its presence in Atlantic Canada.
Scotsburn has fluid milk processing facilities in Sydney, N.S., and Mount Pearl, Nfld. Annual sales from the company’s fluid milk business are approximately $160 million. Its operations include manufacturing and distributing products including fluid milk, cream, sour cream, ice cream mix and cottage cheese, mostly under the Scotsburn name.
The co-op will continue producing other products such as frozen ice cream and frozen novelties.
The acquisition is subject to approval by Scotsburn co-op members, and is expected to close by March 2014.