SCOTSBURN – Members of Scotsburn Co-operative Services Limited voted unanimously in favour Wednesday of a proposed agreement to sell Scotsburn’s fluid milk division to Saputo.
The vote took place at the co-operative’s Annual General Meeting in Stellarton.
“This is a tremendous vote of confidence in Scotsburn’s growth strategy that’s focused on ice cream and novelty products,” said Jim Burrows, a dairy farmer and co-operative member who chairs Scotsburn’s board of directors. “On behalf of my colleagues on Scotsburn’s board, I would like to thank our fellow co-operative members – many of whom are also dairy farmers – for taking the time to attend this important meeting to endorse this future direction.”
According to the sale agreement, Saputo will pay Scotsburn $61 million for the assets related to the fluid milk division, excluding $8 million of working capital items. The agreement is still subject to regulatory approvals, including the Competition Bureau of Canada.
It is scheduled to be finalized by the end of March 2014.