Welcome back to Stockhouse
Member Sign In

Email or Username:

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Enter your email address:
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

Get our best content in your email.

You are already a member! Please enter your password to sign in.

Saputo in $378 million deal to buy Aussie dairy firm, stock rallies

Canadian Press, The Canadian Press
0 Comments| October 8, 2013

MONTREAL _ Dairy and cheese giant Saputo (TSX: T.SAP, Stock Forum) has entered into a C$378-million deal to buy Warrnambool Cheese and Butter Factory Company Holdings Ltd. in Australia.

The Montreal-based company said late Monday that it is offering approximately AUD$7 (C$6.81) in cash per share for all outstanding shares in Warrnambool, one of the largest milk processors in Australia.

Saputo said it is financing the deal with a new three-year term bank loan, and that the enterprise value of the offer values the company at C$450 million, including a C$73 million debt as of June 30.

Saputo said the Australian company's board has unanimously recommended that shareholders accept the offer, which is expected to close in December. The deal is still subject to a number of conditions and regulatory approvals.

In September, Warrnambool was the subject of another takeover offer, which included a cash and shares deal valued at approximately AUD$6.30 (C$6.12) per share. Saputo did not name the other company.

Saputo has been eyeing a takeover of the Australian dairy for years, as it looked to expand its cheese empire in Oceanic countries.

Warrnambool supplies low-cost raw milk and is close to Asia, one of Saputo's main export markets. It produces a variety of milk products, including cheese, butter, butter blends, cream and dairy ingredients at two manufacturing sites in Australia. The company employs 420 people in south Australia and southwest Victoria.

According to Saputo, Warrnambool reported C$477 million of consolidated revenue for the fiscal year ended June 30.
Saputo is Canada's largest dairy processor and among the top 10 in the world. Its products are sold in more than 40 countries.

On the Toronto Stock Exchange, Saputo shares were up 3.5%, at $51.22 in Tuesday trading.


Rate this article
0 stars




No comments yet. Be first to comment!

Leave a Message

You must be logged in to access this feature.

Related News