Canada dairy giant Saputo has entered into a preliminary agreement with Molinos Rio de la Plata, a public company from Argentina, to acquire 100 per cent of Molfino Hermanos, the third largest dairy processor in Argentina. This transaction is subject to an agreement being reached by the parties on certain purchase price adjustments before 30 November 2003 and is also subject to other closing conditions.
The purchase price is reported to be $50.8 million (€43.4m) and is subject to a final agreement being reached by the parties.
Molfino operates two plants and employs 850 people. The company has sales of approximately $ 90 million, with 40 per cent of sales achieved through exports. The company produces a wide variety of soft, semi-soft, hard and grated cheeses as well as butter, cream, milk powder, UHT milk and dulce de leche (caramelized milk).
Brand names include La Paulina, Molfino, Ricrem and Taluhet. Molfino counts on a third-party distribution network of more than 200 distributors.
The proposed transaction is very much in line with Saputo's aim of becoming a truly global cheese company. If the deal goes through, Saputo believes it would have the potential to achieve annual revenues of more than $3.5 billion.
Saputo operates 45 plants and employs over 7,000 people. The company manufactures and distributes a wide range of products, with an emphasis on the dairy and grocery product sectors. The firm markets its products under such brand names as Saputo, Stella, Frigo, Dragone, Armstrong, Dairyland, Baxter and Vachon. The company is the largest dairy processor in Canada and one of the leading cheese manufacturers in North America.