Nova Scotia's Scotsburn to be sold to Quebec dairy giant Agropur

Nova Scotia-based Scotsburn has struck a deal to besold to Quebec dairy giant Agropur Cooperative, the company announcedWednesday afternoon.

Scotsburn began as a creamery 116 years ago in a small Nova Scotia village of the same name. It's nowheadquartered in Truro, N.S., and makes ice cream and other frozen treats at three plants.

"It's not going to be so much a Nova Scotian company or an Atlantic Canadian company anymore," Scotsburn president Jeff Burrows said in an interview.

He wouldnot say how much the deal is worth.

Agropur wants ice cream

Agropur, which is behind the brands Natrel, Oka Cheeseand Iogo, is Canada's largest dairy producer. In 2015, it made $5.9 billion in sales between its 38 plants across North America, according to its website.

"They don't have a huge presence in the ice cream industry. We're bringing that to them," Burrows said.

Agropur wouldcontinue making Scotsburn-brandedproducts, he said.

A spokeswoman from Agropurdeclined an interview Wednesday.

The board of directors for Scotsburn, which is a co-operative, voted unanimously to sell all its assets. The company's shareholders still must vote to approve the deal, and it needs the green light from the Competition Bureau of Canada.

Local jobs protected, company says

Board chairman RobbieMacGregor said in a news releasethat the deal will protect local jobs and maintain frozen dairy production.

Scotsburnemploys 360 people in Atlantic Canada and Quebec, including more than 200 unionizedworkersin Nova Scotia who will keep their jobs, Burrows said.

Agropurwill take on the company's collective agreements.

"We're looking forward to working with the new ownership anything to keep good paying jobs in Nova Scotia," said Cecil Vallis, president of Local 4503, which represents 140 Scotsburn workers in Nova Scotia.

"So long as they are willing to stay, we'll be willing to work with them, that's for sure."

Downsizing

Scotsburn has downsized in recent years with layoffs and closures.

On Dec. 9, its St. John's plantis set to close, with frozen treat production moving to Truro and Lachute, Que. In September, the company closed a popsicle plant in Saint John.

The company soldthe fluid milk part of its business toSaputoInc. for $61 million a few years ago.

Scotsburn currently runs a plant in Truro and last yearbought Quebec-based Les AlimentsLebel, which employed 160 people.

'Rough times'

The sale deal came as "quite a shock" to former Scotsburn CEO James MacConnell, who retired in 2005.

"I know they've had some rough times," he said."Through the years, we did a lot of expansion and it was pretty exciting company, but times change and we used to have thousands of customers and now there's very few."

MacConnellstarted helping out with the original plant in Scotsburn, N.S., at age 10. In 1972, he took over leadership of the company from his father.

"I think that once a head office moves away, you lose a lot more than just a few head office jobs. You lose the community involvement," MacConnellsaid.

"Decisions that are made in Nova Scotia by Nova Scotians are going to be more naturally beneficial to the community than those made farther away. But I guess I'm just a real Nova Scotian. I'm certainly glad it's a Canadian companyat least, but it's a disappointment."

Creditors

MacConnell said the company has a couple shareholder meetings scheduled in the coming weeks. He expects members, who are mostly dairy producers, to ask a lot of questions.

The final vote by members is set for Dec. 15, Burrows said.

"The margins are tight," hesaid. "The competition is fierce and certainly there's consolidation in the marketplace with regards to the large retailers, and that creates pressures on our margins."

If the sale goes through, the company will repay creditors, including the province'sNova Scotia Business Inc., the announcement said.

In 2013, the provincial government, through NSBI, loanedScotsburn $5.5 million, repayable over 15 years, toward its $10-million expansion. The province also offered the company a $480,000 forgivable loan, dependingon jobs created, and $2 million for a novelty ice cream machine.

Scotsburnhas more than 270 members in its co-operative.