Agropur Announces Agreement to Acquire Schroeder

By merging our resources with Agropur, Schroeder will be able to grow more quickly than we could by remaining independent. We also will benefit from Agropur’s extensive product research and development capabilities.

17/12/08 Agropur, a leader in the Canadian dairy industry with revenues of $3 billion, announced that it has signed a binding agreement to acquire Minnesota-based Schroeder Company, a privately held dairy and specialty products manufacturer, as part of Agropur’s strategy to further expand its competitive position in the North American and international dairy marketplace. Schroeder will operate as a wholly owned subsidiary of Agropur, as part of its Natrel fluid milk division. Closing of the deal is scheduled for Dec. 23, 2008. Terms of the deal were not disclosed.

Commented Pierre Claprood, Agropur’s chief executive officer: “Schroeder’s commitment to producing high-quality dairy products and its state-of-the-art facilities make it an attractive addition to Agropur’s business. Schroeder also offers extensive specialty and contract packaging capabilities, providing significant opportunities to grow our business with major food and beverage manufacturers.”

Over the past decade, Schroeder has invested approximately $30 million to modernize its manufacturing facility, and expand into the contract and specialty packaging business.

“We are excited to become part of the Agropur family, which is known as a growth-oriented, industry innovator,” said Bob Kirchoff, Schroeder president. “This is a win-win for our employees and customers. By merging our resources with Agropur, Schroeder will be able to grow more quickly than we could by remaining independent. We also will benefit from Agropur’s extensive product research and development capabilities, which will enhance our ability to bring new products to market for our customers.”

The Schroeder brand will remain intact and its operations in Maplewood, Minn., will continue to operate under existing management. Schroeder has approximately 225 employees. No layoffs are anticipated as a result of the acquisition.