A $105 million deal is in the works for Saputo as the company announced that it has entered into a definitive agreement to sell two fresh milk processing facilities in Australia to Coles Group Limited, an Australian-based supermarket, retail, and consumer services chain.
“We’re continually working to ensure we have the right manufacturing footprint and product offering to enhance our position as a high-quality, low-cost processor,” said Lino A. Saputo, Chair of the Board, President, and Chief Executive Officer. “This marks an important step in executing our long-term vision for success in Australia as we maintain a sharp focus on efficiency to ensure we maximize the return on every liter of milk.”
The facilities are located in Laverton North, Victoria, and Erskine Park, New South Wales, according to a release. Subject to customary conditions, including clearance from the Australia Competition and Consumer Commission, the transaction is expected to close in the second half of 2023.
This comes as part of Saputo’s Global Strategic Plan and is intended to enable the company to further streamline its operating model, adjust its manufacturing network to strengthen market competitiveness, and allow it to reinvest in areas of the business that will lead to more value creation opportunities.
What will come next for Saputo after completing this divestiture? Deli Market News will keep you in the know.