Monday April 21, 2014




Saputo inks $378M deal to buy Australia's Warrnambool Cheese and Butter Factory

MONTREAL - Dairy and cheese giant Saputo (TSX:SAP) 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 35 cents, or 0.71 per cent, at $49.48 in Monday trading.


Comments


NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Yorkton This Week welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

blog comments powered by Disqus


Quick Vote

Survey results are meant for general information only, and are not based on recognised statistical methods.


Markets





LOG IN



Lost your password?