Canada-based Agropur Cooperative concluded a strategic partnership agreement with Canada-based retailer Sobeys that includes the purchase of the dairy processing activities as well as long-term supply agreements.
The $356 million transaction includes the purchase of four plants—two located in Edmonton (milk and ice cream), one in Winnipeg (milk) and one in Burnaby (milk)—and the licensing of the Lucerne trademark to Agropur for the production and distribution of fluid milk and cream.
"We are very excited about this transaction,” says Serge Riendeau, president of Agropur. “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 members?producers and owners."
"This transaction fits perfectly with our growth strategy. It will allow us to better serve our customers and consumers from coast to coast. Thanks to the business related to these assets and the renewal of certain contracts, the acquisition of the plants represents revenues totaling over $400 million and sees us accelerate our growth in the Canadian market," adds Robert Coallier, chief executive officer of Agropur.
Sobeys’ dairy activities employ 281 people and process more than 160 million liters of milk per year.