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Saputo Acquires Activities of Murray Goulburn Co-Operative Co. Limited

Saputo Acquires Activities of Murray Goulburn Co-Operative Co. Limited


MONTREAL, QC, CANADA
Tuesday, May 1st, 2018

This week, Saputo announced that the company has completed the acquisition of the activities of Murray Goulburn Co-Operative Co. Limited (“Murray Goulburn” or “MG”), an acquisition first announced last October. The purchase—CDN $1.29 billion (approximately $1 billion USD)—was financed through a committed bank loan on a debt free basis.

Saputo's Armstrong brand Havarti

The acquisition of Murray Goulburn will add to Saputo’s Dairy Division in Australia. Acquiring a high-profile industry player like MG reinforces Saputo’s commitment to strengthening its presence in the Australian market, growing the company’s presence internationally.

Murray Goulburn produces high-quality dairy foods. Its products include drinking milk, milk powder, cheese, butter, and dairy beverages. The company also produces a range of ingredient and nutritional products, such as infant formula. Murray Goulburn supplies retail and foodservice companies globally with flagships Devondale, Liddels, and Murray Goulburn Ingredients. Taking into account a future divestment of the Koroit plant in accordance with the Australian Competition and Consumer Commission, MG operates seven manufacturing facilities across Australia and one in China, and has approximately 1,900 employees.

MG had revenues of approximately CDN $2.5 billion (A $2.5 billion) for the twelve-month period ending on June 30, 2017. Earnings before interest, taxes, depreciation, amortization, milk supply support package forgiveness, rationalisation costs, write-downs and non-recurring costs were approximately CDN $78 million (A$79 million).

Murray Goulburn's Devondale butters & spreads

Moelis Australia acted as financial advisor to Saputo, while Ash St. Partners Pty Ltd and Clayton Utz acted as legal counsel. National Bank Financial and BMO Capital Markets were co-lead arrangers and joint bookrunners.

Murray Goulburn plans on continuing its investment in its existing Australian platform and wants to contribute to the ongoing development of its domestic and international business.

For more dairy, deli, and bakery news, keep reading Deli Market News.

SaputoMurray Goulburn Co-Operative Co. Limited
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