Saputo Inc., Montreal, says it has entered into an agreement to acquire the Land O’Lakes West Coast industrial cheese business. Land O’Lakes would continue to operate its value added dairy facility in Tulare, Calif., and its cheese facility in Orland, California.

The purchase price is $216 million on a debt-free basis. The transaction is subject to the usual approval and expected to close around April 2. Land O’Lakes West Coast Industrial Business employs approximately 530 people in Tulare, where it makes mostly mozzarella and provolone products. In 2006, Land O’Lakes West Coast generated annual sales of about $415 million.

In connection with this transaction, Saputo will secure a long-term milk supply agreement under which Land O’Lakes will supply to Saputo approximately 2 billion pounds of milk a year. Saputo currently owns and operates two plants in California, and more than 40 worldwide. Last month, North America’s No. 4 dairy company also reported a 42% jump in quarterly net earnings on flat sales.