Saputo to buy cheese and protein assets from Land O'Lakes
February 21, 2007
by FoodBusinessNews.net Staff
MONTREAL — Saputo Inc. entered into an agreement to acquire the assets of Land O’Lakes Cheese & Protein International operations, located in Tulare, Calif. The sale includes roughly all of C.P.I.’s cheese manufacturing operations and cut-and-wrap operations, formally known as Golden Valley Dairy Products.
The transaction carries a sale price of approximately $216 million and includes a long-term milk supply agreement, under which Land O’Lakes will be the full milk supplier to the C.P.I. facility.
The Land O’Lakes Cheese & Protein International business, which employs approximately 530 people, primarily manufactures, sells, shreds and blends mozzarella and provolone products. In 2006, the business had annual sales of approximately $415 million.
The companies anticipate the transaction will close, subject to regulatory review, in April.
This strategic transaction will enable Saputo Cheese Division (USA) to grow substantially, establishing a better balancing capability throughout the U.S. The acquisition further represents a major step for Saputo in its objective to grow its global presence.