Agropur to acquire Agrifoods’ stake in Ultima Foods
Canadian dairy cooperative Agropur has finalised an agreement to acquire Agrifoods International’s stake in Ultima Foods.
Ultima Foods is a 50:50 joint-venture (JV) of Agrifoods and Agropur.
Financial details of the deal have not been divulged by the two companies.
The transaction is expected to further enhance Agropur's range of products in the fresh dairy market and will enable Ultima Foods to retain its position as a leading yoghurt manufacturer in Canada.
Ultima Foods has been in the yoghurt business for more than four decades and owns iögo and Olympic brands.
It employs nearly 660 people in Canada and operates plants in Granby, Quebec; and Delta, British Columbia. It has also total annual sales of more than C$300m ($240m).
Agropur CEO Robert Coallier said: "Our business relationship with Agrifoods has been very fruitful. Among other things, it led to the creation of the iögo brand, a launch that is considered a milestone in the history of Canada's food industry, and more recently the rebranding of Olympic. This transaction is a unique opportunity to develop and optimise our business model."
The closing of the transaction is subject to obtaining customary authorisations, including those from the Competition Bureau.
Agrifoods International CEO Maheb Nathoo said: "Agrifoods is proud to have been a partner in the successful creation of iögo and re-brand of Olympic.
"And we want to express our sincerest thanks and appreciation to all of the staff and management at Ultima Foods whose continued hard work and dedication made this a reality."