VISALIA, CALIF. — California Dairies, Inc. (CDI) has reached an agreement to acquire DairyAmerica, effective Jan. 1, 2023.

Through the agreement, CDI will purchase ownership rights from Agri-Mark, Inc. and O-AT-KA Milk Products, which currently co-own the federated cooperative with CDI. Terms of the purchase were not disclosed.

As a subsidiary of CDI, DairyAmerica will continue marketing milk powders produced by Agri-Mark, Inc. and O-AT-KA Milk Products. Per CDI, the marketing agreements will keep in place “multi-origin and sustainable supply benefits currently enjoyed by DairyAmerica.”

“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,” said Brad Anderson, president and chief executive officer of California Dairies, Inc.

CDI also said Patti Smith will remain CEO of DairyAmerica, which will maintain its office in Fresno, Calif.

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

A member-owned milk marketing and processing cooperative, CDI produces roughly 40% of California’s milk and is co-owned by 300-plus dairy producers. CDI is home to both Challenge Butter and Danish Creamery, notable butter brands in the industry.