Agrifoods International Cooperative’s subsidiary Organic Meadow Limited Partnership has acquired GreenSpace Brands’ Rolling Meadow Dairy brand, excluding the egg business.

Under the terms of the agreement, Agrifoods will pay $1.8m as upfront consideration, as well as royalty based on revenue over four years.

The acquisition is expected to bolster Agrifoods’ footprint in the Canadian dairy industry and complement the Organic Meadow brand with its product portfolio.

Agrifoods International Cooperative CEO Maheb Nathoo said: “Organic Meadow was one of the early pioneers in the organic dairy market and now with the acquisition of Rolling Meadow, we have a tremendous opportunity to grow our market leading positions in organic and grass-fed dairy by offering consumers more options for authentic, farmer-owned, Canadian dairy products.”

GreenSpace offers natural food products across the North American market.

“The sale, as well as the strategic restructuring, highlights a shift in our strategy and how we manage our business.”

Its portfolio includes meat products, organic food for infants and toddlers, snacks and organic juices.

Along with the sale of its Rolling Meadow Dairy brand, the company also announced the restructuring of its operating model.

The model emphasises the performances of the brand, reducing importance on the shared services platform.

Its brand team will now be responsible for the operations, finance and product development, along with the development of marketing strategies.

The company also added that the latest revision of the operating model will result in reducing the team by nine members.

GreenSpace Brands CEO Matthew von Teichman said: “The sale, as well as the strategic restructuring, highlights a shift in our strategy and how we manage our business.

“The restructuring recognises that our platform strategy, although successful within the sales function, did not meet our expectations across all functions within the business.”