Go to the Globe and Mail homepage

Jump to main navigationJump to main content

AdChoices

Report on Business

Streetwise

News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

Saputo’s Morningstar deal: the debt is cheap and easy Add to ...

Subscribers Only

When striking a takeover, acquirers grapple with a tough question: how do we pay for it?

Do we issue shares? Raise debt? Dip into our cash account?

For Saputo Inc.’s $1.45-billion takeover of Morningstar Foods LLC, the answer was obvious: debt. Prior to the deal, Saputo net debt was just 0.4 times earnings before interest, taxes, depreciation and amortization. (The company’s long-term debt was $379-million last quarter.)

Report Typo/Error

Follow on Twitter: @timkiladze

Next story

loading

In the know

The Globe Recommends

loading

Most popular videos »

Highlights

More from The Globe and Mail

Most popular