Agropur acquires Agrifoods’ stake in yogurt-maker Ultima Foods
Ultima Foods was previously a joint venture between the two Canadian diary cooperatives, and it will remain the only national Canadian-owned yogurt-maker
LONGUEUIL, Que.— Two of Canada’s biggest dairy cooperatives, Agropur Cooperative and Agrifoods International Cooperative Ltd., have struck a deal by which Agropur will become the sole owner of Ultima Foods Inc.
Ultima Foods, known for its iögo and Olympic yogurt brands, was a 50-50 joint venture between Agrifoods and Agropur.
The dollar value of the transaction was not made available, but both cooperatives expressed their pleasure with the deal:
“Our business relationship with Agrifoods has been very fruitful. Among other things, it led to the creation of the iögo brand, a launch that is considered a milestone in the history of Canada’s food industry, and more recently the rebranding of Olympic. This transaction is a unique opportunity to develop and optimize our business model,” said Robert Coallier, CEO of Agropur.
“We are proud that our successful partnership with Agropur resulted in Ultima Foods becoming an industry leader with brands enjoyed by Canadians from coast to coast,” said Tim Hofstra, president and chair of Agrifoods.
Hofstra continued, “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.”
Ultima Foods employs approximately 660 people in Canada and operates two plants, in Granby, Que., and Delta, B.C. The business has total annual sales of more than $300 million.
Agropur says the transaction will augment its range of products in the fresh dairy market and Ultima Foods will continue to be the only national Canadian-owned yogurt-maker.
This transaction is subject to authorization by the Competition Bureau.