CANADA – Saputo Inc., Montreal-based Canadian dairy company has agreed to acquire the activities of F&A Dairy Products, Inc. at a purchase price of US$85 million (CDN$111 million).
The transaction funded through cash-free and debt-free basis, will be paid in cash from cash on hand and available credit facilities.
It includes its two manufacturing facilities located in Las Cruces, New Mexico, and Dresser, Wisconsin (USA) with approximately 170 people.
F&A Dairy Products generated revenues of approximately US$163 million for the year ended August 31, 2018 and has a rich portfolio, a variety of natural cheeses, including mozzarella and provolone distributed in Mexico and the United States.
The deal is expected to close by the end of 2018 subject to customary and regulatory conditions.
Within the past one year, Saputo has lined up a series of acquisitions including Murray Goulburn, which was recently approved by the Australian Competition and Consumer Commission.
This was after it agreed to sell its Koroit plant, the only hurdle that threatened the US$1.3 billion deal, within a specified period to an ACCC approved buyer.
Last year, the company agreed to acquire Betin, Inc., doing business as Montchevre, in a bid to expand its presence in the cheese market.
The acquisitions will add to and complement the activities of Saputo’s Cheese Division (USA).
Saputo produces, markets and globally distributes an array of dairy products including cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients.
It holds brands such as Saputo, Alexis de Portneuf, Armstrong, COON, Cracker Barrel, Dairyland, DairyStar, Devondale, Friendship Dairies, Frigo Cheese Heads, La Paulina, Milk2Go/Lait’s Go, Montchevre, Murray Goulburn Ingredients, Neilson, Nutrilait, Scotsburn, Stella, Sungold, Treasure Cave and Woolwich Dairy.
It is one of the top ten dairy processors in the world and the largest cheese manufacturer and a leading fluid milk and cream processor in Canada.