Canadian dairy company Saputo Inc. has entered into an agreement to acquire the activities of F&A Dairy Products, Inc. Its activities are conducted at two manufacturing facilities located in Las Cruces, New Mexico, and Dresser, Wisconsin (USA). The business employs approximately 170 people.
The purchase price of $85 million (approximately CDN$111 million), on a cash-free and debt-free basis, will be paid in cash from cash on hand and available credit facilities.
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 (CDN$212 million).
The acquisition of F&A Dairy Products’ activities will add to and complement the activities of Saputo’s Cheese Division (USA).
The transaction is subject to customary conditions (including regulatory approval) and is expected to close by the end of 2018.