Coopers said Wednesday it would sell a farm equipment manufacturer to the U.S. company Monsanto for about $5 billion in cash, stock and other assets.
The transaction is the latest twist in a complicated, sometimes-unexpected transition for the Vermont dairy company, which has been grappling with the fallout from a series of scandals and political turmoil in recent years.
Coopers Chief Executive Officer and co-founder and chairman Richard Schaeffer announced the deal in a blog post Wednesday.
The announcement came less than a week after The New York Times reported that Monsanto had bought a majority stake in Coopers.
Cooper also has been battling with the U, U.K., France, Germany and other countries over the past year.
In November, the company announced it would cut more than 1,000 jobs, and the company also announced plans to close a plant in Massachusetts.
Covers, paper and other products were among the goods that Coopers had been selling in Vermont since at least the early 1990s, when the state’s dairy farmers began growing grain for food.
Coppers decision to sell was made after Monsanto reached a deal with a Chinese company to buy the company.
Co-CEO Joe Loehrmann told the New York Post that Coppers management team was “optimistic” about the transaction and that the deal would be “a big asset for the company.”
“We think it’s going to be good for the farm, and it’s good for our shareholders,” Loehmann said in the blog post.
“I think it makes sense.”
Coopers is the third dairy company to sell a stake in a foreign company since the merger between Monsanto and Syngenta was finalized in 2011.
The first was American Dairies, which bought the Dairys in 2009.
The Coopers-Syngenta deal was the latest of a series involving the Coppers’ dairy operations.
In December 2015, Coopers announced plans for a $1.5 billion acquisition of the Vermont-based Dairy Equipment Manufacturers Association, which represents the industry’s farmers and other manufacturers.
The deal with Monsanto is the second-largest transaction in Coppers history, behind the $1 billion deal that the Copper Group signed with Monsanto in 2013.
The dairy group said in a statement that it plans to continue to “support and strengthen the cooperative system” by working with the Cooper family.
“We remain committed to working with and supporting farmers and cooperative companies,” the statement said.
The news of the Coppsons deal comes after Coopers executives announced that the company will soon be making changes to the way it operates.
In October, the Coopters announced that it will stop buying dairy products from countries that have laws that restrict the importation of dairy products, such as China, Iran, Russia and Sudan.
The company also said it will discontinue the sale of dairy milk to the United States, China, India and Japan, and will instead focus on the sale and distribution of milk products from the United Kingdom, Australia and New Zealand.
Copps plans to buy up to 100,000 acres of land and sell it to farmers, and farmers will have a say in how much they receive.
Coopppers shares fell nearly 1% to $38.76, or $1,973.80 in U., euro and yen, on Wednesday.
Coops shares were up 1.9% in premarket trading.
The Dow Jones Industrial Average rose 801.80 points, or 0.7%, to 23,054.83, the S&P 500 gained 1.7% to 2,849.76 and the Nasdaq Composite gained 27.4% to 5,957.04.
The price of Coopers shares fell 0.3% to about $39.13.
Coors was up 1%.
The S&P 500 index of leading stock indices gained 2.4%.
The Dow and the S+P 500 were up 3%.