Saputo Completes the Acquisition of the Everyday Cheese Business of Lion-Dairy & Drinks Through its Dairy Division
26 May 2015 --- Saputo Inc. announces that its Australian subsidiary, Warrnambool Cheese and Butter Factory Company Holdings Limited, completed the transaction announced on March 2, 2015 and acquired the everyday cheese business of Lion-Dairy & Drinks Pty based in Victoria, Australia.
The purchase price of CDN$134.4 million (A$137.5 million), on a debt-free basis, includes CDN$104.1 million1 which represents the value of inventory net of a minimal amount of assumed liabilities, subject to closing adjustments, and was financed through new bank term loans.
The EDC Business' operations include cutting and wrapping, distribution, sales & marketing and intellectual property associated with the COON, Cracker Barrel, Mil Lel and Fred Walker brands. The EDC Business generates annual sales of approximately CDN$156 million1 (A$160 million) and employs approximately 170 people. The cut and wrap operations of the EDC Business are located in a building owned by WCB, which is adjacent to WCB's cheese manufacturing facility at Allansford.
The transaction will enable WCB to increase its presence in consumer branded everyday cheese products segment in Australia with strong market positions in this segment, and is consistent with Saputo's stated strategy to invest in WCB to accelerate its growth in Australia.
