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Saputo Inc. is raising a total of $599-million from a bought deal and private placement in a move that could allow the Montreal-based dairy giant to keep expanding.

BMO Nesbitt Burns Inc. and National Bank Financial Inc. together bought 10.1 million shares from Saputo for $39.60 each, or about $400-million. The two banks, underwriters in the deal, will now aim to resell those shares to various investors. The shares were priced about 5 per cent below Saputo’s Wednesday closing price of $41.70.

At the same time, two companies controlled by Saputo family members, including founder Lino Saputo, bought an additional five million shares for $199-million.

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Saputo will use the new money to repay debt incurred because of recent acquisitions, and for “general corporate purposes,” the company said in a news release, adding that the financing gives the company “flexibility to pursue its growth strategy.”

The Saputo family has built one of the world’s largest dairy companies, with more than 30 acquisitions over the years.

Some analysts say Saputo is likely scouring the global industry for further acquisition opportunities. There was speculation earlier this year that it could be eyeing a takeover of Dallas-based Dean Foods Co., which sells one of every three jugs of milk Americans drink and recently said it is exploring strategic options. Saputo declined to comment on the speculation at the time.

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