Saputo agrees to acquire F&A Dairy Products

Canadian dairy company Saputo has signed an agreement to acquire the activities of US-based cheese manufacturer F&A Dairy Products in a C$111m ($85m) deal.

To fund this acquisition, Saputo plans to use available cash on hand and credit facilities.

Established in 1965, F&A Dairy Products has been producing a wide range of natural cheese products at its two manufacturing facilities located in Las Cruces, New Mexico; and Dresser, Wisconsin. It has a workforce of nearly 170 people.

The company’s natural cheese portfolio includes mozzarella and provolone, which are distributed in the US and Mexico.

For the 12-month period which ended on 31 August, F&A Dairy Products generated revenues of approximately C$212m ($163m).

Completion of the transaction is subject to customary conditions, including regulatory approval and is expected to take place by the end of this year.

In May, Saputo acquired the activities of Australia’s Murray Goulburn (MG).

The transaction was announced in October last year when Saputo agreed to acquire the Australian co-operative for C$1.29bn ($1bn) on a debt-free basis.

MG is engaged in the production of a wide range of dairy foods such as cheese, butter, milk powder, dairy beverages and a range of nutritional products such as infant formula.