Saputo Inc. Completes the Acquisition of the Activities of Neilson

The purchase price of $465 million on a debt-free basis was paid in cash by drawing on available lines of credit and additional financing.

02/12/08 Saputo Inc. completed the transaction announced on October 22, 2008 and acquired the activities of Neilson Dairy, the dairy division of Weston Foods (Canada) Inc. which manufactures, sells and distributes, primarily in Ontario, fluid milk and dairy beverages, cream products and non dairy creamers, butter, yogurt, juices and drinks under the Neilson brand and other brands (Neilson Dairy).

Neilson Dairy employs approximately 390 people at its two facilities located in Halton Hills and Ottawa, Ontario. It generates annual sales of approximately $600 million and annual earnings before interest, income taxes, depreciation and amortization of approximately $50 million. The purchase price of $465 million on a debt-free basis was paid in cash by drawing on available lines of credit and additional financing.

This transaction will enable Saputo Dairy Products Division (Canada) to increase its presence in the Ontario fluid milk and cream market. Neilson Dairy primarily operates within the retail market segment and, as part of the transaction, Saputo inherits Neilson Dairy’s long term relationships with its customers.