Scotsburn Co-operative to acquire Canadian frozen dessert maker

Canada-based Scotsburn Co-operative Services has entered into an agreement-in-principle to acquire Les Aliments Lebel Foods, a frozen dessert maker.

Les Aliments Lebel offers a wide range of frozen dessert products, including ice cream, frozen yogurt and frozen treats.

The purchase price of the transaction has not been disclosed.

The deal, which is expected to take place by March 2014, is subject to due diligence and satisfying the relevant regulatory approvals.

Scotsburn Co-operative Services president and CEO Doug Ettinger said the agreement gives Scotsburn an opportunity to build on its growth as a leading ice cream producer and supplier across Canada.

"By continuing to increase Scotsburn’s focus on ice cream – most recently with this proposed purchase of Lebel – we are also opening the door to major growth opportunities throughout North America," Ettinger added.

Les Aliments Lebel Foods president and founder Gaetan Lebel will oversee operations at the Lebel plant in Lachute, Quebec, on behalf of Scotsburn; the plant has a workforce of around 160 people.

Lebel said: "Thanks to the co-operative ownership of Scotsburn, the respect for local autonomy and commitment to Lebel’s successful brands, I am confident that Scotsburn’s values are very much aligned with the values of Lebel, our employees and our partners throughout Quebec."

Scotsburn Dairy Group manufactures ice cream and frozen novelties in Atlantic Canada as private label products for major retail customers; its products are distributed in Canada as well as globally.