Saputo to acquire Morningstar Foods for $1.45 billion

December 4, 2012

Saputo Inc. has signed a definitive agreement to acquire Morningstar Foods LLC, a subsidiary of Dean Foods Co., for $1.45 billion. Morningstar produces a variety of dairy and non-dairy extended shelf-life products, including creams and creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, as well as cultured products such as sour cream and cottage cheese. These products are manufactured under private labels and owned brands, and are sold throughout the United States.

For the 12 months ending Sept. 30, 2012, Morningstar had revenues of about CDN$1.6 billion.
Morningstar has approximately 2,000 employees and operates 10 manufacturing facilities located in nine states. The combined business will have approximately 12,000 employees and 57 manufacturing facilities in five countries.

The acquisition of Morningstar will complement the activities of the Saputo Dairy Products Division (USA). Through this acquisition, Saputo will benefit from Morningstar’s national manufacturing and distribution footprint and will optimize coast-to-coast service. This transaction will expand product offerings to customers in the United States and broaden the range of Saputo’s future acquisition opportunities.

The transaction is subject to customary conditions, including regulatory approval, and is expected to close by the end of 2012.

Press release (pdf)