Saputo Inc. says it is buying the third largest dairy processor in Argentina for $50.8-million (U.S.).
The Montreal-based cheese maker says it has a preliminary deal with Molinos Rio de la Plata SA to buy its Molfino Hermanos SA business.
Molfino, which has annual sales of about $90-million, employs a work force of 850 and has two plants. About 40 per cent of its sales are exported out of Argentina ot more than 30 countries.
It produces soft, semi-soft, hard and grated cheese and also butter, cream and milk powder. Molfino's main brands are La Paulina, Molfino, Ricrem and Taluhet.
"By giving the Company the opportunity to establish itself in a market where the raw material is accessible at competitive international prices, this proposed transaction is in line with Saputo's goal of becoming a world-class cheese company," the company said.