Dairy Farmers of America (DFA) and Agropur announced Dec. 18 that they have entered into an agreement for DFA to acquire Agropur’s St. Paul, Minn., facility.  The facility manufactures a variety of fresh, extended shelf life and aseptic dairy products for well-known grocery store chains and organic milk brands.

The acquisition by DFA, which is subject to satisfaction of customary closing conditions, will expand the farmer-owned cooperative’s extended shelf life capabilities and introduce aseptic processing into its business portfolio.

“This acquisition offers an opportunity to grow our customer base while strengthening our processing capabilities for existing customers and diversifies our product portfolio,” said Pat Panko, senior vice president and chief operating officer for DFA’s Fluid Milk & Ice Cream division.

Of the sale, Agropur president Doug Simon stated, “DFA is a tremendous organization with strong cultural and business ideations that marry well with those of Agropur’s cooperative roots. Our focus has been and will always be meeting the needs of our customers and being strategic in our investments toward complementary growth areas. This transaction is well aligned with long-term strategic plans for both parties.”

Employees will retain their current positions. In addition, the existing management team will continue to manage all day-to-day operations, including customer relationships, milk procurement and production. It is anticipated that the transaction will close early in January.