Saputo Inc. to acquire the activities of Land O’Lakes West Coast industrial cheese business
Saputo Inc. to acquire the activities of Land O’Lakes West Coast industrial cheese business
02/21/2007 0:00 UTC
(Montréal, February 21, 2007) – Saputo Inc. announces today that it has entered into an agreement to acquire the activities of Land O’Lakes West Coast industrial cheese business (“LOL’s West Coast Industrial Business”). Land O’Lakes is a national US farmer-owned food and agricultural cooperative that will continue to operate its value added dairy facility in Tulare, California and its cheese facility in Orland, California.
The purchase price of US$216 million on a debt-free basis, is payable in cash from liquidity and/or by drawing on available lines of credit. The transaction is subject to the usual conditions (including approval by the U.S. Anti-Trust authorities) and is expected to close on or about April 2, 2007.
Land O’Lakes West Coast Industrial Business employs an aggregate of approximately 530 people in Tulare, California and its operations consist in manufacturing, selling, shredding and blending of mostly mozzarella and provolone products. In 2006, Land O’Lakes West Coast Industrial Business generated annual sales of approximately US$415M and approximately US$20M of EBITDA on a pro forma basis taking into account the recent California make allowance increase effective November 1, 2006.
In connection with this transaction, Saputo will secure a long term milk supply agreement pursuant to which Land O’Lakes will be supplying to Saputo approximately 2 billion pounds of milk annually.
This strategic transaction will enable Saputo Cheese Division (USA) to grow significantly in size, establishing a better balancing capability throughout the US. This acquisition represents a major step for Saputo in its objective to grow its global presence.
About Saputo
Always with an expert hand, Saputo transforms into success the passion and initiative of the 8,500 dedicated men and women who work in its 46 plants around the world. Combining tradition and innovation, the Company produces, commercializes and distributes the highest quality products under such well-known brands as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, De Lucia, Dragone, DuVillage de Warwick, Frigo, Kingsey, La Paulina, Nutrilait, Princesse, Ricrem, Sir Laurier d’Arthabaska, Stella, Treasure Cave, Big Daddy, HOP&GO!, Rondeau and Vachon. As one of the top twenty dairy processors in the world, the largest dairy processor in Canada, among the top five cheese producers in the United States, the third largest dairy processor in Argentina and the largest snack-cake manufacturer in Canada, Saputo renews its commitment to excellence and growth every day. Saputo Inc. is a public company whose shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit our Web site at www.saputo.com.
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Information
Céline Patenaude
Acting Director, Communications
514.328.3377
The purchase price of US$216 million on a debt-free basis, is payable in cash from liquidity and/or by drawing on available lines of credit. The transaction is subject to the usual conditions (including approval by the U.S. Anti-Trust authorities) and is expected to close on or about April 2, 2007.
Land O’Lakes West Coast Industrial Business employs an aggregate of approximately 530 people in Tulare, California and its operations consist in manufacturing, selling, shredding and blending of mostly mozzarella and provolone products. In 2006, Land O’Lakes West Coast Industrial Business generated annual sales of approximately US$415M and approximately US$20M of EBITDA on a pro forma basis taking into account the recent California make allowance increase effective November 1, 2006.
In connection with this transaction, Saputo will secure a long term milk supply agreement pursuant to which Land O’Lakes will be supplying to Saputo approximately 2 billion pounds of milk annually.
This strategic transaction will enable Saputo Cheese Division (USA) to grow significantly in size, establishing a better balancing capability throughout the US. This acquisition represents a major step for Saputo in its objective to grow its global presence.
About Saputo
Always with an expert hand, Saputo transforms into success the passion and initiative of the 8,500 dedicated men and women who work in its 46 plants around the world. Combining tradition and innovation, the Company produces, commercializes and distributes the highest quality products under such well-known brands as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, De Lucia, Dragone, DuVillage de Warwick, Frigo, Kingsey, La Paulina, Nutrilait, Princesse, Ricrem, Sir Laurier d’Arthabaska, Stella, Treasure Cave, Big Daddy, HOP&GO!, Rondeau and Vachon. As one of the top twenty dairy processors in the world, the largest dairy processor in Canada, among the top five cheese producers in the United States, the third largest dairy processor in Argentina and the largest snack-cake manufacturer in Canada, Saputo renews its commitment to excellence and growth every day. Saputo Inc. is a public company whose shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit our Web site at www.saputo.com.
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Information
Céline Patenaude
Acting Director, Communications
514.328.3377
Lynda Leith
Investor Relations
(514) 328-3381
