Hilmar Cheese Company Inc. said it entered into an agreement to sell its Turlock, Calif., milk powder facility to California Dairies Inc. (CDI). The asset sale agreement allows both parties to begin due diligence in preparation to complete the transaction.

The sale is part of Hilmar Cheese Company’s new Strategic Plan 2021 announced in March. The plan’s three strategies focus on people, operational excellence and delivering products and solutions that “wow” customers, the Hilmar, Calif.-based company said.

“We’re committed to building on Hilmar Cheese Company’s strong culture and purpose to improve lives while setting a bold vision for the future,” said David Ahlem, CEO and president of Hilmar Cheese Company. “The Strategic Plan 2021 identifies the strategies we will use over the next three years to create sustainable growth that is repeatable, ethical and responsible to current and future communities.

“Our cheese, whey protein and lactose business remains core to our future,” he continued. “The Turlock milk powder facility sale supports our plan to focus on products to grow the strength of our business and fulfill our vision for the future.”

Completed in 2015, the milk powder facility integrates advanced processing technology to manufacture whole milk powder and skim milk powder for the export market, Hilmar Cheese Company said.

CDI will offer positions to Turlock-based Hilmar Cheese Company employees so they can continue their roles in producing high-quality milk powder. The close of the purchase and transfer of plant ownership and associated assets are anticipated to happen May 2019.

Hilmar Cheese Company said it will continue operations with no impact to the dairy farm families who contract to sell their milk to the company.