Will increase its presence in the consumer everyday cheese products segment.
MONTREAL — Saputo Inc. has signed a deal to buy the everyday cheese business of Lion-Dairy & Drinks Pty Ltd. based in Victoria, Australia, for $134.4 million in cash.
The purchase includes $104.1 million for inventory net of a minimal amount of assumed liabilities, Montreal-based Saputo said.
The transaction, through Saputo’s Australian subsidiary, Warrnambool Cheese and Butter Factory Co. Holdings Ltd., is to close in early May, subject to regulatory and shareholder approval.
The everyday cheese business, includes cutting and wrapping, distribution, sales and marketing and intellectual property associated with the Coon, Cracker Barrel, Mil Lel and Fred Walker brands. It generates annual sales of $156 million and employs about 170 people.
© 2015 The Canadian Press