Canadian dairy processors Agropur Co-operative and Agrifoods International Co-operative Ltd. have an agreement for Agropur to become the sole owner of Ultima Foods Inc.
Ultima Foods was a 50-50 joint venture of the two co-ops. The financial terms were not released.
Ultima Foods makes about 30 percent of the yogurt consumed in Canada, including the iögo and Olympic brands, which registered industry-leading growth last year.
“This is a very positive transaction as it will create the optimal condition for Ultima Foods’ development and will enable the company to remain in the hands of Canadian dairy producers,” said Tim Hofstra, president and chair of Agrifoods
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Ultima Foods employs about 660 people in Canada and operates plants in Granby, Que., and Delta, B.C. The acquired business has total annual sales of more than $300 million.
The transaction will augment Agropur’s range of products in the fresh dairy market, and Ultima Foods will continue to be the only national Canadian-owned yogurt-maker. This deal is subject to obtaining the usual authorizations, including those of the Competition Bureau.
Ultima announced in June that it was spending $14.4 million to install a drinkable yogurt production line and to optimize operations at its Granby plant.
Ultima provided $10.8 million while Investissesment Quebec contributed a $3.6 million interest-free loan.
