Dean Foods, one of the United State’s largest milk producers, announced this February that it was looking for “strategic alternatives to enhance shareholder value.” One such alternative included an outright sale, although others have speculated that options for the dairy company include a joint venture, shedding assets, or continuing the company’s current business plan. It is, however, $887 million in debt.
According to a report from The Globe and Mail, Saputo, the Montreal-based dairy company, is interested in pursuing the outright sale option, as it reportedly looks into an acquisition of Dean Foods.
This isn’t the only acquisition on Saputo’s mind, as the company is also considered a potential bidder for Kraft Heinz’s sour cream and cottage cheese brand Breakstone’s, as reported by Seeking Alpha. In March, Breakstone’s announced that it was considering selling the brand for $400 million.
Saputo has been running through acquisitions, snapping up Dairy Crest in Europe, F&A Dairy Products in the United States, and Woolwich Dairy in Canada, to name a few. The dairy company is not only strengthening its foothold in the United States, but across the globe as well.
Will Saputo move forward with this acquisition? Deli Market News will continue to update you with the latest in specialty food happenings.
The National Milk Producers Federation's President and CEO Jim Mulhern discusses a win for the dairy industry.