California Dairies Inc., the largest dairy farmer-owned cooperative in the state, has agreed to acquire DairyAmerica, effective Jan. 1.

DairyAmerica, a globally recognized supplier of dairy ingredients, is a federated cooperative currently co-owned by CDI, Agri-Mark Inc. and O-AT-KA Milk Products.

As part of the acquisition, CDI will purchase the ownership rights currently held by Agri-Mark and O-AT-KA Milk Products, making DairyAmerica a wholly owned subsidiary, according to a press release from CDI.

“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, CDI president and CEO.

Founded in 1995, DairyAmerica is the largest supplier of nonfat dry milk and skim milk powder in the world, providing 500,000 metric tons a year to 60 countries.

Under the new structure, DairyAmerica will continue to market milk powders produced by Agri-Mark and O-AT-KA Milk Products.

“We continue to support the DairyAmerica vision,” said William Schreiber, CEO of O-AT-KA Milk Products.

“We are pleased to be a part of this transition and have seen the benefits of DairyAmerica’s transformation under its new leadership the past two years,” said David Lynn, interim CEO of Agri-Mark.

DairyAmerica will remain under the leadership of Patti Smith, CEO, and its office will remain 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,” Smith said.