Acquisitive Canadian dairy co-op Agropur has pounced again, with a deal for Davisco Foods International’s dairy-processing assets in the US, Europe and China.
Serge Riendeau, Agropur’s president, said the Davisco assets generate sales of over US$1bn a year. He said the deal, struck for an undisclosed sum, was “by far the largest transaction in Agropur’s 76-year history”.
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Once the acquisition is finalised, Agropur will attain assets including three cheese processing factories and an ingredients plant in the US. Davisco also has sales offices in the US, China, Singapore and Switzerland, plus distribution centres in China and the Netherlands.
“The world dairy industry is consolidating at an accelerated pace and our acquisition of Davisco supports our objective of increasing our global presence,” Agropur CEO Robert Coallier said. “One of our key business objectives is to pursue strategic acquisitions to diversify our geographic markets and product portfolios. This acquisition, like our other recent ones, will help solidify the development and sustainability of our co-operative by securing a favourable strategic positioning at all national, North American and global levels.”
Agropur has already made three significant deals this year. Last week, it said it would buy the dairy and food distribution units of fellow co-op Northumberland Dairy Cooperative.
Earlier this month, Agropur struck deals to buy four plants from – and supply a range of products to – Sobeys, one of the country’s largest retailers.
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By GlobalDataIn March, Agropur announced plans to merge with Canadian peer Dairytown Products.
The company made five acquisitions in 2013, including buying Quebec brie and camembert maker Fromagerie Damafro, own-label and ingredients supplier M. Larivée International and British Columbian ice cream maker Coast Mountain Dairy.
