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Sunday, December 17, 2017
 Prairie Farms Dairy and Swiss Valley Farms Agree to Merge  

With a merger expected to expand sales opportunities for both companies, farmer-owned dairy cooperatives Prairie Farms Dairy and Swiss Valley Farms have entered into an agreement to merge their businesses.


Under the terms of the agreement, Prairie Farms based in Carlinville, IL, will merge the assets of Swiss Valley Farms from Davenport, Iowa. This merger will create a new processor, operating under the name of Prairie Farms Dairy that would rank No. 8 for dairy product sales on Dairy Foods’ Top 100 Dairy Processor list that was published in August 2016. 


The combined entity will have 40 processing plants with Swiss Valley Farms five manufacturing plants that produce cheese and whey powder in Luana, Iowa, Shullsburg and Mindoro, Wisconsin, and Rochester and Faribault, Minnesota and 35 manufacturing plants of Prairie Farms Dairy that distributes dairy products to about one-third of the U.S.


Prairie Farms CEO and executive vice president Ed Mullins said: “The merger with Swiss Valley was driven by our commitment to build value for our cooperative members and is consistent with our growth strategy.


“Swiss Valley’s contributions will allow us to diversify our product portfolio and expand in to new markets,”


Financial details of the transaction were not disclosed and the terms of the merger agreement still need to be approved by cooperative members from both companies. Upon approval, the deal is expected to be completed in mid-2017.


Following the completion of the merger, Swiss Valley Farms CEO Chris Hoeger will continue to oversee the operation of the plants.


Swiss Valley's CEO said: “This merger offers numerous benefits for our cooperative members and is an ideal opportunity to bring together two industry leaders.


“We will leverage the strengths of both companies to offer a broader range of products and to enhance and expand relationships with customers.”


Prairie Farms Dairy is one of the largest in the Midwest, with over 600 farm families, 5700 employees, 35 manufacturing plants, over 100 distribution facilities and annual sales of over $3 billon.


Swiss Valley Farms was named 2016 Exporter of the Year by the USDEC and Dairy Foods, with export sales that have grown by 422% in the past five years and has had annual sales of over $300 million.


Click here to view press release
 

Sources Include: Hoard’s Dairyman Intel 

 


Posted on Wednesday, December 21, 2016 (Archive on Wednesday, December 28, 2016)
Posted by bholcomb@adpi.org  Contributed by bholcomb@adpi.org
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