Further International Expansion By Saputo Group
Having just completed its £975 million acquisition of Dairy Crest in the UK, Canadian dairy company Saputo Group is further expanding its international presence by purchasing the speciality cheese business of Australia’s Lion Dairy & Drinks for A$280.0 million (C$265.0 million). The specialty cheese business is conducted at two manufacturing facilities located in Burnie and King Island, Tasmania (Australia) and employs approximately 400 people.
The business being acquired 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 business generated revenues of approximately A$192 million.
The acquisition 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.
