California Dairies has agreed to acquire DairyAmerica for an undisclosed sum, effective 1 January 2023.

Dairy ingredient supplier DairyAmerica is currently co-owned by California Dairies, Agri-Mark and O-AT-KA Milk Products. With the acquisition, DairyAmerica will become a wholly owned subsidiary of California Dairies.

Brad Anderson, president and chief executive officer of California Dairies, said: “This investment in DairyAmerica provides the opportunity for CDI to unlock significant synergies and represents another step towards improving efficiencies in providing world markets with high-quality dairy ingredients”.

He continued: “Under the new structure, DairyAmerica will continue to market milk powders produced by Agri-Mark and O-AT-KA Milk Products. These marketing agreements will allow for the continued multi-origin and sustainable supply benefits currently enjoyed by DairyAmerica.”

Patti Smith will remain as DairyAmerica’s chief executive officer, and the company’s office will continue to be located in Fresno, California.

“As we continue to transform our business, this investment by California Dairies provides the framework to focus on our people and processes while strengthening our global competitiveness,” said Smith.