Lactalis Canada signs deal to buy Agropur's fine cheese business
Lactalis Canada Inc. has signed a deal to acquire Agropur's fine cheese division.
The transaction includes Quebec-made brands OKA, Monsieur Gustav and L’Extra, two production facilities and fine cheese import activities.
Lactalis Canada said the deal enhances its portfolio of specialty and core cheese brands, including Galbani, Président, Cracker Barrel, Black Diamond, P’tit Québec, Balderson, Cheestrings Ficello and aMOOza!
“This acquisition reflects Lactalis Canada’s clear ambition in this country—to lead through investment in efficient capacity and capability building, trusted national brands including customer brands and strong partnerships across the dairy value chain,” said Mark Taylor, president and CEO of Lactalis Canada, in a press release. “Building on the significant investments we have made in the Canadian dairy and food manufacturing sector, this latest transaction underscores yet another important milestone in Lactalis Canada’s growth journey and highlights our role as a priority market for Lactalis Group.”
Lactalis Canada will acquire two production facilities in Oka and Saint-Hyacinthe, Que., and add some 400 employees to its team of 4,500 across Canada.
“This decision has been carefully considered and is intended to strengthen the Cooperative’s long term competitiveness and ensure its sustainability. Although profitable, the fine cheese business represents only a small portion of our operations, accounting for approximately 2% of our consolidated revenue and 2% of the milk processed in our Canadian plants,” said Roger Massicotte, president of Agropur, in a statement.
Agropur plans to focus its efforts over the coming years on activities that "generate the greatest value for its dairy farmer members," said CEO Émile Cordeau. That includes fluid milk, value-added milk, industrial cheese, butter and dairy ingredients.
The acquisition is subject to customary closing conditions and approval by Competition Bureau Canada. Financial terms of the agreement were not disclosed.
