Dairy processor Saputo Inc. has announced it will divest an 80% stake in its Dairy Division (Argentina) to Gloria Foods, the dairy and food holding company of Grupo Gloria, according to a release from Saputo. The deal values the business at an enterprise value of about $630 million (U.S.), and Saputo would receive net proceeds after tax of about $400 million (U.S.) from the divestiture (subject to certain customary adjustments).
Carl Colizza, president and CEO of Saputo, said the move reflects the company’s effort to “refine our global footprint for long-term growth” while still maintaining a portfolio of Argentina-sourced products for international markets.
Included in the deal are two manufacturing facilities and local brands (La Paulina, Ricrem and Molfino) — and the business will continue to manufacture select items on behalf of Saputo, the release noted. The Argentine dairy business reportedly generated approximately 7% of Saputo’s consolidated revenues ($1.2 billion Canadian) over the last four quarters. The business Saputo is divesting control of ranks as the top dairy processor in Argentina, the release further noted.
Closure of the transaction is expected in the first quarter of fiscal 2027.
About the Author
Andy Hanacek
Senior Editor
Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.