Saputo to buy Canada’s Shepherd Gourmet Dairy for C$100m

Canadian dairy firm Saputo has entered an agreement to purchase the activities of Ontario-based company Shepherd Gourmet Dairy.

The transaction is set to be carried out on a debt-free-basis at a purchase price of C$100m ($77.68m), which Saputo will pay in cash from cash on hand and the company’s available credit facilities.

The transaction is subject to customary closing conditions and is expected to be completed in June.

Saputo’s will leverage the acquisition to support its dairy division in Canada through the expansion of its speciality cheese business, in addition to increasing its yoghurt offering within the country.

Shepherd Gourmet is primarily focused on the production, marketing and distribution of a wide range of speciality cheeses and yoghurt, including its newest line of Icelandic Skyr-style yoghurts in Canada.

The company reported revenues of approximately C$57m ($44.28m) for the 12-month period ending 30 April.

Shepherd Gourmet Dairy employs approximately 90 personnel and conducts its manufacturing activities at a production facility located in St Marys, Ontario, Canada.

Saputo is a publicly traded company engaged in the production and distribution of a large variety of dairy products such as cheese, cream, fluid milk and extended shelf-life milk, as well as cultured products and dairy ingredients.

Saputo previously completed the acquisition of the activities of Australia-based dairy food provider Murray Goulburn Co-Operative for C$1.29bn ($1bn) in late-April.

The Murray Goulburn acquisition is anticipated to enable Saputo to support and expand the activities of its dairy division in Australia.