Canadian Pizza Magazine

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Saputo acquires Scotsburn fluid milk activities


April 15, 2014
By Canadian Pizza

April 15, 2014, Montreal – Saputo Inc. has acquired
the fluid milk activities of Scotsburn Co-Operative Services Limited based in
Atlantic Canada. Scotsburn, a Nova Scotia co-operative, will continue its other
activities such as its frozen ice cream and frozen novelties business.

April 15, 2014, Montreal – Saputo Inc. has acquired
the fluid milk activities of Scotsburn Co-Operative Services Limited based in
Atlantic Canada. Scotsburn, a Nova Scotia co-operative, will continue its other
activities such as its frozen ice cream and frozen novelties business.

The purchase price of $61 million, on a
debt-free basis, excludes about $8 million of working capital items and was
paid by drawing on available credit lines.

The Scotsburn Fluid Milk Business operates
two fluid milk-processing facilities located in Sydney, N.S., and Mount Pearl, N.L.,
and employs an aggregate of approximately 400 people in Atlantic Canada. Its
operations consist of manufacturing, selling, marketing, distributing and
merchandising of products such as fluid milk, cream, sour cream, ice cream mix
and cottage cheese, mainly under the Scotsburn brand. The Scotsburn Fluid Milk
Business generates annual sales of approximately $160 million and about $8
million of earnings before interest, taxes, depreciation and amortization.

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This transaction will enable Saputo’s Dairy
Division (Canada) to increase its presence in Atlantic Canada.