Saputo has moved to expand its presence in Atlantic Canada through the acquisition of the liquid milk operations of Nova Scotia-based Scotsburn Co-Operative Services.
The Canadian dairy giant agreed to pay C$61m (US$55.7m), excluding about $8m in working capital items, for Scotsburn’s liquid milk unit. The business generates annual sales of around C$160m and EBITDA of around C$8m, Saputo said.
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Saputo will take control of the selling and distribution of milk, cream, sour cream ice cream mix and cottage cheese, mainly sold under the Scotsburn brand. The deal includes two milk processing facilities.
The Scotsburn co-operative will continue its other activities, which include ice cream and frozen dessert production.
The deal is subject to closing conditions, including approval from Scotsburn’s members and competition regulators. Saputo expects to close the transaction in March.
Saputo has expanded aggressively through M&A in recent years. The Canadian dairy group significantly beefed up its presence in the US when it snapped up the Morningstar business from Dean Foods in December 2012.
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By GlobalDataIt is also engaged in a protracted takeover battle for Australian dairy Warrnambool Cheese and Butter Factory.
