Saputo Inc. to Increase its Presence in the Ontario Fluid Milk Market by Acquiring Neilson Dairy
This transaction will enable Saputo Dairy Products Division (Canada) to increase its presence in the Ontario fluid milk and cream market.
23/10/08 Saputo Inc. announces that it has agreed to acquire 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).
The purchase price of $465 million on a debt-free basis, is payable in cash by drawing on available lines of credit and additional committed financing. The transaction is subject to the usual conditions (including approval by the Competition Bureau) and is expected to close on or about November 24, 2008.
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.
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 will inherit Neilson Dairy’s long term relationships with its customers.
