J.R. Simplot Co. plans to buy 65 percent of Mountain Farms, a Logan cheese packaging company.
Mountain Farms sells about 33 million pounds of cheese annually after buying in bulk from producers in the West and Midwest and packaging it for retail sale.The company is a subsidiary of Alpine Lace Brands Inc. of Maplewood, N.J., which will keep a 35percent stake in the company, Simplot announced.
The Boise-based agribusiness giant's Simplot Dairy Products Inc. subsidiary produces about 75 million pounds of cheese a year.
Simplot spokesman Fred Zerza said Mountain Farms had about $58 million in sales last year. The company has 205 employees and sells most of its cheese to supermarket chains for resale under private labels.
"We view it as a viable business and think it can operate on its own," Zerza said. "We see some marketing advantages long term as Mountain Farms is integrated into our cheese business."
Alpine Lace officials said the sale - to be completed in 30 to 45 days - is contingent upon final closing and Federal Trade Commission approval.