Dean Foods to sell Morningstar Foods division to Saputo Inc.
The $1.45 billion deal is expected to close by the end of the year.
Dean Foods Co. (NYSE: DF), Dallas, and Saputo Inc. (TSX:SAP), Montreal, said today that they have agreed on the sale of Dean's Morningstar Foods division to Saputo for US$1.45 billion on a debt-free basis. It will be financed through a newly committed bank loan. The transaction is expected to close by the end of December 2012. For the 12 months ended Sept. 30, 2012, Morningstar had revenues of about CDN$1.6 billion, and earnings before interest, taxes, depreciation, and amortization of approximately CDN$153 million.
Dead Foods Co. ranks first on the Dairy 100, Dairy Foods annual ranking of North America's largest dairy processors. Saputo ranks third, and is Canada's largest dairy processor. See "Dean, Nestle, Saputo retain top spots on the Dairy 100."