Loveday Mushroom Farms, based out of Winnipeg, has been acquired by U.S.-based South Mill Champs.

The move was made in response to increasing market demand as the health benefits of mushrooms become mainstream. The joint company's enhanced production and supply capabilities will expand its ability to supply fresh, high quality mushrooms to all major population areas in North America within 48 hours.

"Partnering with Loveday makes sense on all levels," said Lewis Macleod, President and CEO of South Mill Champs. "We're culturally aligned, operating with similar high integrity and focus on providing customers with a high level of quality and service, and employees with a great place to work. The geographic location of Loveday is complementary to our bi-coastal operations and will further enhance our fresh supply chain in the Midwest region of Canada and the United States."

South Mill of Pennsylvania and Champs Mushrooms of British Columbia merged to form South Mill Champs in late 2017.

"We're very happy to join the South Mill Champs organization," said Burton Loveday, President of Loveday Mushroom Farms. "The combining of efforts will allow us to expand our capabilities and leverage South Mill Champs' infrastructure to further support our customers' growth and ever-increasing demands."

Loveday has been in operation since 1932.

Terms of the deal were not disclosed.