Dairy Farmers of America (DFA) has entered into an agreement with North American dairy cooperative Agropur to acquire its facility in St Paul, Minnesota.

Financial details of the deal have not been divulged by both companies.

Agropur’s St Paul facility produces a wide range of fresh, extended shelf-life and aseptic dairy products for grocery store chains and organic milk brands.

Dairy Farmers of America Fluid Milk and Ice Cream Division senior vice-president and COO Pat Panko said: “This acquisition offers an opportunity to grow our customer base while strengthening our processing capabilities for existing customers and diversifies our product portfolio.”

“This acquisition offers an opportunity to grow our customer base while strengthening our processing capabilities for existing customers and diversifies our product portfolio.”

The deal is expected to increase DFA’s extended shelf-life capabilities along with the addition of aseptic processing into its business portfolio.

Completion of the deal is subject to the satisfaction of customary closing conditions. The transaction is expected to close by January.

Upon completion of the deal, DFA intends to retain all employees along with the existing management team for day-to-day operations, including customer relationships, milk procurement and production.

Agropur president Doug Simon said: “DFA is a tremendous organisation with strong cultural and business ideations that marry well with those of Agropur’s cooperative roots.

“Our focus has been and will always be meeting the needs of our customers and being strategic in our investments toward complementary growth areas. This transaction is well aligned with long-term strategic plans for both parties.”

Agropur Cooperative was founded in 1938 and includes 3,290 members, as well as 8,300 employees. Last year, the cooperative reported sales of $6.4bn.

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