Scotsburn sells fluid milk distribution network

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Scotsburn Co-operative Services Limited today announced it has an agreement with Saputo Inc. that will see the largest dairy processor in Canada acquire Scotsburn’s fluid milk activities, including the facilities in Sydney, Nova Scotia, and Mount Pearl, Newfoundland and Labrador, as well as the fluid milk distribution network in Atlantic Canada.



“This wasn’t an easy decision to make, as fluid milk has been a core part of Scotsburn’s business since the mid 1960s,”  said Doug Ettinger, President and Chief Executive Officer of Scotsburn. “Where it has become more difficult for regional players to remain competitive in Atlantic Canada, this transaction will accelerate Scotsburn’s growth strategy on ice cream. Our milk business will realize its full potential and be positioned for success as part of Saputo – a company with an efficient processing and distribution network for fluid milk across Canada.”

The purchase price of the Saputo transaction is $61 million in cash, which excludes about $8 million of working capital items. Specific details will be communicated to Scotsburn Co-operative members directly in advance of a vote on the agreement, which is expected later this month. Closing of the transaction is subject to satisfaction of relevant regulatory approvals, which includes approval from the Competition Bureau of Canada.

Scotsburn and Saputo will be working closely with the employees of the fluid milk business to ensure a smooth transition. Final closing of the transaction is expected to occur around March 2014.

“By changing our business model, Scotsburn is acting on a tremendous opportunity to build on our growth as a leading ice cream producer and supplier across Canada,” said Ettinger. “Increasing Scotsburn’s focus on ice cream also opens the door to growth throughout North America. This is good news for Scotsburn shareholders as this direction will result in strong returns for our co-operative members here in Atlantic Canada.”

Organizations: Saputo, Competition Bureau of Canada

Geographic location: Atlantic Canada, North America

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Recent comments

  • Allan Fraser
    January 23, 2014 - 09:00

    Traditions are going by the wayside. I remember working weekends and holidays on the Scotsburn milk truck all through Trenton and Pictou Landing. You know, back when the milk was DELIVERED.

  • just thinking
    January 21, 2014 - 08:55

    watch the price of milk go up .and I bet some people will loose there jobs .

  • just thinking
    January 21, 2014 - 08:54

    watch the price of milk go up .and I bet some people will loose there jobs .

  • Jim Perro
    January 20, 2014 - 18:36

    I hope this works out well for them Scotsburn is a great company with a lot of great people

  • pictou county resident
    January 17, 2014 - 21:19

    It's a shame - this company is becoming a shell of its original self and it has abandoned its roots in the process. It's too bad that the dairy cooperatives in Atlantic Canada didn't merge to form one big cooperative: Farmers, Scotsburn, Northumberland, and ADL all could have joined forces and been a very strong regional player. Now we're being picked over by Saputo (Baxter, Scotsburn) and AgroPur (Farmers, Cookes).... The age of the Maritimes having an independent dairy is quickly coming to an end.

  • Jo
    January 17, 2014 - 15:32

    Sad day indeed for Scotsburn. My father was the first driver Scotsburn hired to collect fluid milk in pictou county. not much left but the offices and I bet they will move to Truro where the ice cream plant is.

    January 17, 2014 - 14:44