Dairytown Products and Agropur Cooperative Conclude an Agreement in Principle to Merge The Two Entities

31 Mar 2014 --- The Boards of directors of Dairytown Products Ltd. and Agropur Cooperative announced that they have concluded an agreement in principle to merge the two organizations.

"This is excellent news for both our organizations. Our respective vision and values gave us the opportunity to reach this agreement. This will allow the producers of both organizations to benefit from the advantages of being part of a large national cooperative, and to better serve customers across the country," declared Dairytown Products Ltd. Chairman, Jim Walker.

“This agreement is consistent with our desire to keep dairy processing assets in the hands of producers wherever possible,” said Serge Riendeau, President of Agropur Cooperative. “It will also increase our critical mass in the region and help secure our long-term presence in Atlantic Canada,” he added.

Next steps

The two organizations should reach a final agreement within the next few weeks.

The Dairytown beneficiaries will be asked to vote on the proposed merger.

The transaction is subject to final approval after conducting a due diligence review and obtaining the usual authorizations, including those of the Competition Bureau and other competent authorities.