Food and feed ingredients merchandiser Diversified Ingredients entered into a deal to purchase a cheese manufacturing plant in Preston, MN from Wisconsin’s largest cheese supplier Foremost Farms USA, the companies announced in a release Tuesday.

Foremost Farms is shedding the facility because is not suited for the production of whey products used in infant formula, a major market for the cooperative. The site is best suited for the production of specialized products, like organic, in small volumes, but Foremost Farms said it is not “well positioned” to operate in these niche markets.

 “While it’s difficult to see employees leave the cooperative, an owner focused on building Preston’s established capabilities offers the best opportunity for the plant and its workers,” Greg Schlafer, president and CEO of Foremost Farms, said in a statement. “We invested in the plant three years ago updating the dryer. It was the right decision at the time. Today, it gives the plant a base to build a future as a viable specialty drying operation with Diversified Ingredients.”

The facility in Preston has milk separation, condensing and drying assets for organic dairy fluid and ingredient marketers.

Diversified Ingredients Managing Partner Matthew Collins said the company was looking forward to “expanding our services into the many specialty markets we service with the drying, separation and blending capabilities that this facility offers.”

As part of its plans to acquire the Preston site, Diversified Ingredients intends to transition 20 workers who are currently employed at the facility.