Montreal-based Saputo has announced its plan to acquire the activities of F&A Dairy Products, Inc., a dairy processing company with two sites in the United States, for US$85 million. Located in New Mexico and Wisconsin, F&A Dairy employs approximately 170 people.
The purchase price will be paid in cash from cash on hand and available credit facilities, according to Saputo.
F&A Dairy Products manufactures a variety of natural cheeses, including mozzarella and provolone, which are distributed in the United States and Mexico. For the twelve-month period ended on August 31, 2018, F&A Dairy Products generated revenues of approximately US$163 million (approximately $212 million).
The acquisition this company, Saputo says, will “add to and complement the activities of Saputo’s Cheese Division (USA).”
Saputo is one of the top ten dairy processors in the world, the largest cheese manufacturer and the leading fluid milk and cream processor in Canada, and the top dairy processor in Australia. In the USA, Saputo ranks among the top three cheese producers, and is one of the largest producers of extended shelf-life and cultured dairy products
The transaction is subject to customary conditions including regulatory approval and is expected to close by the end of 2018.