Saputo Inc. will sell two fresh milk processing facilities in Laverton North, Victoria, and Erskine Park, New South Wales, Australia, to Coles Group Limited, an Australian-based supermarket, retail, and consumer services chain, in a transaction valued at approximately $71 million U.S. dollars.
The transaction is subject to customary conditions, including the clearance from the Australian Competition and Consumer Commission, and is expected to close in the second half of calendar 2023.
In line with Saputo's Company’s Global Strategic Plan, this intended divestiture will enable Saputo to further streamline its operating model, adjust its manufacturing network to strengthen market competitiveness, and allow it to reinvest in areas of the business that will result in more value creation opportunities.
“We’re continually working to ensure we have the right manufacturing footprint and product offering to enhance our position as a high-quality, low-cost processor,” said Lino A. Saputo, chair of the board, President and CEO. “This marks an important step in executing our long-term vision for success in Australia as we maintain a sharp focus on efficiency to ensure we maximize the return on every liter of milk.”