Saputo acquires Morningstar Foods
Dec. 4, 2012, Montreal – Saputo Inc. has signed a definitive agreement
to acquire Morningstar Foods, LLC, a subsidiary of Dean Foods Company.
Dec. 4, 2012, Montreal – Saputo Inc. has signed a definitive agreement to acquire Morningstar Foods, LLC, a subsidiary of Dean Foods Company.
The acquisition of Morningstar will complement the activities of the
Saputo Dairy Products Division (USA). Through this acquisition, Saputo
will benefit from Morningstar's national manufacturing and distribution
footprint and will optimize coast-to-coast service. This transaction
will expand product offering to customers in the United States and
broaden the range of Saputo's future acquisition opportunities.
The purchase price for the transaction is US$1.45 billion on a debt-free
basis and will be financed through a newly committed bank loan. The
transaction is subject to customary conditions (including regulatory
approval) and is expected to close by the end of December 2012. The combined business will have approximately 12,000 employees and 57 manufacturing facilities in five countries.
Morningstar produces a variety of dairy and non-dairy extended shelf-life products, including creams and creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, as well as cultured products such as sour cream and cottage cheese. These products are manufactured under a wide array of private labels and owned brands, and are sold nationwide through an internal sales force and independent brokers. Morningstar's clients include retailers, national quick-serve restaurant chains, grocery stores, mass merchandisers and distributors across the United States. Morningstar has approximately 2,000 employees and operates 10 manufacturing facilities located in nine states.