Saputo’s headquarters are seen in Montreal in this 2013 photo.Christinne Muschi/The Globe and Mail
Saputo Inc. has signed a deal to buy the everyday cheese business of Lion-Dairy & Drinks Pty Ltd. based in Victoria, Australia, for $134.4-million in cash.
The purchase includes $104.1-million for inventory net of a minimal amount of assumed liabilities, Quebec-based Saputo said Monday in a news release.
The transaction, through Saputo's Australian subsidiary, Warrnambool Cheese and Butter Factory Co. Holdings Ltd., is expected to close in early May, subject to regulatory and shareholder approval.
The everyday cheese business includes cutting and wrapping, distribution, sales and marketing and intellectual property associated with the Coon, Cracker Barrel, Mil Lel and Fred Walker brands. It generates annual sales of $156-million and employs about 170 people.
"The transaction will enable WCB to increase its presence in consumer branded everyday cheese products segment in Australia with strong market positions in this segment and is consistent with Saputo's stated strategy to invest in WCB to accelerate its growth in Australia," the company said in a news release.