Saputo Inc., Montreal, said it entered into an agreement to acquire the activities of F&A Dairy Products Inc. F&A Dairy Products operates out of two manufacturing facilities located in Las Cruces, N.M., and Dresser, Wis. The business employs approximately 170 people.
The purchase price of US$85 million, on a cash-free and debt-free basis, will be paid in cash from cash on hand and available credit facilities, Saputo said.
F&A Dairy Products manufactures a variety of natural cheeses, including mozzarella and provolone, which are distributed in the United States and Mexico. For the 12-month period ending Aug. 31, 2018, F&A Dairy Products generated revenues of approximately US$163 million, Saputo noted.
The acquisition of F&A Dairy Products’ activities will add to and complement the activities of Saputo’s Cheese Division (USA). The transaction is subject to customary conditions (including regulatory approval) and is expected to close by the end of 2018.