Saputo agrees to acquire F&A Dairy Products for $85m

Canadian dairy company Saputo has agreed to acquire F&A Dairy Products in a deal worth approximately $85 million.

F&A Dairy Products manufactures a variety of cheeses such as mozzarella, cheddar, monterey jack and provolone, which are sold in the US and Mexico.

Saputo will acquire F&A’s two manufacturing facilities located in Las Cruces, New Mexico, and Dresser, Wisconsin as part of the deal, as well as the company’s 170 employees.

For the financial year ending on August 31, 2018, F&A registered revenues of approximately $163 million, and Saputo claims that the acquisition of F&A Dairy Products’ activities “will add to and complement the activities of Saputo’s Cheese Division (USA).”

The acquisition is subject to regulatory approval, and Saputo estimates that the transaction will close by the end of 2018.

Earlier this year, Saputo expanded its North American dairy operations by acquiring Ontario-based sheep’s cheese and yogurt maker Shepherd Gourmet for approximately $77.7 million.

This latest deal comes just under a year after Saputo agreed to acquire Australia’s struggling dairy business Murray Goulburn for around $1 billion, though the Australian Competition and Consumer Commission (ACCC) raised concerns about the acquisition.

However, Saputo agreed to sell its cheese processing plant in Koroit, Australia to Bega Cheese for approximately $184 million in July in order to satisfy these concerns.