Saputo Inc. has acquired the specialty cheese business of Lion-Dairy & Drinks Pty Ltd.
The Specialty Cheese Business is conducted at two manufacturing facilities located in Burnie and King Island, Tasmania (Australia) and employs approximately 400 people.
The purchase price of $280 million, on a cash-free and debt-free basis, will be paid in cash at closing from cash on hand and available credit facilities.
The Specialty Cheese Business produces, markets and distributes a variety of specialty cheeses under a wide portfolio of Australian brands, including South Cape, Tasmanian Heritage, Mersey Valley and King Island Dairy.
For the twelve-month period ended on December 31, 2018, the Specialty Cheese Business generated revenues of approximately $192 million.
The Specialty Cheese Business will enable Saputo’s Dairy Division (Australia) to further diversify its product offering, adding to and complementing its current activities.
The transaction is subject to foreign investment approval and clearance by the Australian Competition and Consumer Commission, and is expected to close in the second half of calendar year 2019.