Dairy product marketer Saputo Inc. plans to acquire two cheese production facilities in the U.S. for $85 million from F&A Dairy Products Inc. and take on about 170 employees at the sites, the Montreal-based firm announced in an October 26 press release.
Saputo made the announcement on Oct. 26 that the processor was buying F&A Dairy Products, Inc. Included in the purchase are two manufacturing facilities located in Las Cruces, New Mexico and Dresser, Wisconsin. F&A Dairy Products employs 170 people. The facilities produce an array of natural cheese products, like mozzarella, that are distributed in the U.S. and Mexico.
During a 12 month period ending on Aug. 31, 2018, F&A Dairy Products created approximately US$163 million (CDN$212 million) in revenue.
Saputo said the manufacturing assets will support its Cheese Division operating in the U.S. F&A Dairy Products generated some $163 million in revenues during the twelve-month period ending on Aug. 31, 2018, according to the release.
The purchase of F&A Dairy Products is the latest by Saputo in a number of moves made to expand in the U.S. Last year, Saputo bought an extended shelf-life dairy plant from Southeast Milk in Florida. In 2013, Morningstar Foods formerly owned by Dean Foods Company was purchased, giving Saputo an offering dairy and non-dairy extended shelf-life in the U.S. Other U.S. processing plants have been purchased in the past decade such as two California cheese plants and a Wisconsin cheese plant.
Saputo operates a U.S. division that includes the Dairystar and Friendship Dairies brands and markets a number of products under the label, including: milk, cottage cheese, ice cream, creamers and whipped cream.
According to RaboBank, Saputo is the 8thlargest dairy processor in the world after switching spots with China’s Yilli Group. Prior to buying Australia’s Murray Goulburn Co-Operative Co. this year, Saputo had 50 manufacturing facilities in Canada, the U.S., Australia and Argentina, employing approximately 12,800 people.
Completion of the deal is pending regulatory approval and other customary closing conditions. Saputo expects the sale to close by the end of next year.