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Dairytown » Latest News » Dairytown Products Ltd. and Agropur Cooperative Conclude an Agreement in Principle to Merge the Two Entities

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Dairytown Products Ltd. and Agropur Cooperative Conclude an Agreement in Principle to Merge the Two Entities

March 29th, 2014

Sussex, New Brunswick and Longueuil, Quebec (Canada)

The Boards of directors of Dairytown Products Ltd. and Agropur Cooperative announced today that they have concluded an agreement in principle to merge the two organizations.

"This is excellent news for both our organizations. Our respective vision and values gave us the opportunity to reach this agreement. This will allow the producers of both organizations to benefit from the advantages of being part of a large national cooperative, and to better serve customers across the country," declared Dairytown Products Ltd. Chairman, Jim Walker.

"This agreement is consistent with our desire to keep dairy processing assets in the hands of producers wherever possible," said Serge Riendeau, President of Agropur Cooperative. "It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada," he added.

Next Steps

The two organizations should reach a final agreement within the next few weeks.

The Dairytown beneficiaries will be asked to vote on the proposed merger.

The transaction is subject to final approval after conducting a due diligence review and obtaining the usual authorizations, including those of the Competition Bureau and other competent authorities.

About Diarytown Products Ltd.

Strategically located at the heart of New Brunswick's dairy farming community and with close access to central Canada and northeast United States, Dairytown Products is a world-class supplier of butter, skim milk powder and custom milk powder blends. As a specialized supplier of dairy products and ingredients to the retail, food service and further processing trades, the company has earned an industry reputation for products of uncompromising quality and functional performance. It employs 189 people and has 207 beneficiaries, all of whom are New Brunswick dairy producers.

About Agropur

Founded in 1938, Agropur is an important player in the North American dairy industry. With sales of more than $3.8 billion, the Cooperative is a source of pride for its 3,348 dairy producer owners and 6,300 employees. Agropur processes more than 3.3 billion litres of milk per year in its 31 plants across North America and boasts an impressive line of products that includes brands such as Natrel, Québon, OKA, iögo and Olympic (joint venture with Ultima Foods), Farmers, Agropur Signature cheese, Central Dairies, Agropur Grand Cheddar, Sealtest and Island Farms.

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