NEWS RELEASE
GAY LEA FOODS
************************
Gay Lea Foods today announced it has entered into a non-binding letter of intent to sell Hewitt’s Dairy Limited, located in Hagersville, Ontario, to Mississauga, Ontario-based Dairy Fountain Inc.
Dairy Fountain is a specialty dairy processor, making a wide range of products, including kefir, ayran (drinkable yogurt), sour cream and different types of yogurts. The buyer intends to invest in the future growth of Hewitt’s Dairy, which will continue operating in Hagersville.
Gay Lea Foods has also coordinated a discussion between Dairy Fountain and a well-known Ontario ice cream maker and dairy bar operator, who has expressed a strong interest in operating and investing-in Hewitt’s Dairy Bar. Though these discussions are preliminary and ongoing, all parties anticipate a positive outcome for the community.
Hewitt’s Dairy and the Hewitt’s Dairy Bar are institutions in Hagersville and the surrounding area. Gay Lea Foods believes its collaborative approach to this sale will benefit Hewitt’s Dairy and Hewitt’s Dairy Bar, Hewitt’s employees, the Hagersville community, and Ontario’s dairy industry.
Proceeds from this sale will also allow Gay Lea Foods to further re-invest in its core dairy operations.
“Selling Hewitt’s Dairy enables sharper focus on our co-operative’s business strategy, strengthens our already strong balance sheet, and creates opportunity for future investment in other areas of our business,” said Suzanna Dalrymple, president and CEO, Gay Lea Foods.
Gay Lea Foods remains in a strong financial position, having delivered its strongest-ever EBITDA performance in its last full-year reporting period, fiscal year 2023.
The parties are working to finalize the transaction in the next six months and will announce a definitive agreement if it is reached. This is a private sale, the terms of which will not be disclosed.
Hamilton cheese-making facility expansion
With this announcement, Gay Lea Foods also announced a several million-dollar investment to expand its Hamilton, Ontario, cheese-making facility.
The strategic expansion will enhance production capacity at the facility, which specializes in a range of traditional European cheeses, including hard, soft, semi-soft, and shredded cheeses, as well as cheese blends, under the Salerno brand and other brand names. These products, ranging from mozzarella to ricotta, are widely distributed across retail stores and major foodservice suppliers.
“We look forward to sharing more about our plans to significantly expand production at our Hamilton, Ontario, facility in the months ahead,” said Dalrymple. “Cheese remains a focus of our business strategy, and one which we expect will deliver increasing value to members in the years to come.”
************************
