FARGO (AP) - Cass-Clay Creamery is merging with the larger New Ulm, Minn.-based Associated Milk Producers Inc.

Fargo-based Cass-Clay will become a division of Associated Milk Producers. Cass-Clay will continue to sell products under the Cass-Clay name, the company said.

The combined organization will be more efficient, said Keith Pagel, Cass-Clay president and general manager.

No job cuts are expected at Cass-Clay, he said.

Cass-Clay has 264 employees, more than $100 million in annual sales and 200 farmer-owners who produce about 300 million pounds of milk annually.

Associated Milk Producers has about 1,400 employees, more than $1 billion in annual sales and 4,000 members. It produces about 5 billion pounds of milk annually.

The farmers and owners of Cass-Clay must approve the merger. Approval is expected in March, with the merger completed April 1.