Dairy giant continues expansion
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Agropur grows with partnership agreements, acquisitions
Longueuil, Que. – Agropur Cooperative is expanding again, with the acquisition of Miramichi, N.B.’s Northumberland Dairy Cooperative, and a strategic partnership agreement with Sobeys that includes the purchase of dairy processing facilities and the establishment of long-term supply agreements.
Quebec-based Agropur will acquire Northumberland Dairy’s Miramichi plant, distribution centres and brands, while the New Brunswick co-op will retain its hardware and building supply operations. Northumberland processes 27 million litres of milk annually, with sales of $67 million per year.
Under the Sobeys agreement Agropur will purchase two milk and ice cream processing facilities in Edmonton, Alta., and two milk processing operations in Winnipeg, Man., and Burnaby, B.C.
The partnership also includes the licensing of the Lucerne trademark to Agropur for the production and distribution of fluid milk and cream, as well as long-term supply agreements that will begin once the facilities have transferred to Agropur and once current agreements expire.
In making the announcement Agropur CEO Robert Coallier noted that the acquisition of the four plants represent more than $400 million in revenues, as well as accelerated growth for Agropur in the Canadian market.
“We are very excited about this transaction,” added Agropur president Serge Riendeau. “The dairy industry, both Canadian and worldwide, is very competitive. This transaction will confirm our leadership position in the Canadian milk industry, for the greater benefit of all of our member-producers and owners.”
Agropur Cooperative represents 3,554 dairy producer owners, and processes more than 3.4 billion litres of milk each year at 32 facilities across North America. It’s annual sales exceed $3.8 billion.