MONTREAL—Saputo Inc. says it will pay $134.4 million in cash to acquire the everyday cheese business Lion-Dairy & Drinks Pty Ltd based in Victoria, Australia.
The purchase is on a debt-free basis and includes 104.1 million for inventory net of a minimal amount of assumed liabilities.
The transaction, through Saputo’s Australian subsidiary, Warrnambool Cheese and Butter Factory Co. Holdings Ltd. (WCB), is expected to close in early May subject to regulatory and shareholder approval.
Lion-Dairy & Drinks everyday cheese business operations include cutting and wrapping, distribution, sales & marketing and intellectual property associated with the COON, Cracker Barrel, Mil Lel and Fred Walker brands.
The business generates annual sales of approximately CDN$156 million and employs approximately 170 people. The cut and wrap operations of the EDC Business are located in a building owned by WCB, which is adjacent to WCB’s cheese manufacturing facility at Allansford.