Agropur Cooperative in Canada has signed an agreement with Northumberland Dairy Cooperative to acquire dairy and food distribution assets from the latter for an undisclosed amount.

The Miramichi plant in New Brunswick which annually processes 27 million litres of milk is included in the transaction.

The acquired operations are said to have annual sales totaling $67m.

Agropur will also acquire Northumberland’s distribution centres and its brands, as agreed, while Northumberland will retain its operations pertaining to hardware and building supply.

Agropur president Serge Riendeau said: "Both the hardware and dairy operations will remain in the hands of cooperatives, a strong economic model that supports community economic development wherever it is present. Agropur plans to maintain its commitment to New Brunswick and the Miramichi area in particular."

The deal is subject to certain regulatory approvals as well as other customary closing conditions.

Earlier in July, Agropur has agreed to buy dairy processing operations from food retailer Sobeys, in a deal worth $356m.

The transaction includes the acquisition of two plants in Edmonton, one in Winnipeg and one more in Burnaby, British Columbia.

The scope of the agreement also includes the licencing of the Lucerne trademark to Agropur for the production and distribution of fluid milk and cream.

Image: Agropur has agreed to buy dairy processing operations from Sobeys for $356m earlier in July. Photo: courtesy of Somchai Som /