Saputo Inc. to Acquire DCI Cheese Company
DCI holds an important portfolio of import licenses for specialty cheese manufactured abroad and also manufactures and sells in the retail market other products such as spreads, salsa, hummus and dips from the Santa Rosa, California facility.
2/18/2011 --- Saputo Inc. has signed an agreement to acquire Fairmount Cheese Holdings Inc., the parent company of DCI Cheese Company Inc. DCI is one of the largest specialty cheese marketers in the United States. DCI sells and distributes specialty cheese from the cut and wrap facility located in Green Bay, Wisconsin, and from the Carlstadt, New Jersey distribution center. DCI holds an important portfolio of import licenses for specialty cheese manufactured abroad and also manufactures and sells in the retail market other products such as spreads, salsa, hummus and dips from the Santa Rosa, California facility. DCI has a total of approximately 475 employees.
For the year ended December 31, 2010, DCI had sales of about US$460 million, EBITDA of approximately US$34 million1 3 and sales volumes of about 160 million pounds. The purchase price of US$270.5 million on a debt free basis will be paid in cash from liquidity and/or by drawing on available lines of credit. The transaction is subject to usual conditions (including regulatory approval) and is expected to close in the course of March 2011.
DCI has an extensive product portfolio consisting of over 100 types of domestic and imported specialty cheeses. DCI markets its products nationwide under a variety of brand names such as County Line, Great Midwest, Joan of Arc, King’s Choice, Nikkos, Salemville, il Giardino and Organic Creamery, as well as under private labels.
The acquisition will complement the activities of Saputo Dairy Products Division (USA) and increase its presence in the specialty cheese category in the United States.
