Saputo Inc. announced Oct. 26 that it has entered into an agreement to acquire the activities of F&A Dairy Products Inc., which are conducted at two manufacturing facilities located in Las Cruces, N.M., and Dresser, Wis. The business employs approximately 170 people.
The purchase price of $85 million, on a cash-free and debt-free basis, will be paid in cash from cash on hand and available credit facilities, Saputo said.
F&A Dairy Products manufactures a variety of natural cheeses, including mozzarella and provolone, that are distributed in the U.S. and Mexico. For the 12-month period ended on Aug. 31, F&A Dairy Products generated revenues of approximately $163 million.
Saputo said the acquisition will add to and complement the activities of its USA Cheese Division.
The transaction is subject to customary closing conditions (including regulatory approval) and is expected to close by the end of 2018.
Saputo produces, markets and distributes a wide array of dairy products, including cheese, fluid milk, extended-shelf-life milk and cream products, cultured products and dairy ingredients. Saputo is one of the top 10 dairy processors in the world, the largest cheese manufacturer and the leading fluid milk and cream processor in Canada, the top dairy processor in Australia and the second largest in Argentina. In the U.S., Saputo ranks among the top three cheese producers and is one of the largest producers of extended-shelf-life and cultured dairy products.