Saputo Inc. announced that it has entered into an agreement to acquire the activities of Shepherd Gourmet Dairy Inc, based in Ontario, Canada. The transaction will enable the company's Dairy Division (Canada) to increase its presence in specialty cheese and expand its yogurt offering in Canada.
The purchase price of $77 million (CDN$100 million), on a debt-free-basis, will be paid in cash from cash on hand and available credit facilities.
Shepherd Gourmet’s activities are conducted at a single manufacturing facility located in St. Marys, Ontario. The business employs approximately 90 people. It manufactures, markets, and distributes a variety of specialty cheeses, yogurt, as well as Skyr Icelandic-style yogurt in Canada. For the twelve-month period ending on April 30, 2018, Shepherd Gourmet generated revenues of approximately $44 million (CDN $57 million).
The transaction is subject to customary conditions and is expected to close in June 2018.
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