Dairy firm Saputo to acquire Dean Foods subsidiary Morningstar
Montreal-based dairy company Saputo has agreed to acquire Morningstar Foods, a subsidiary of Dean Foods Company, for $1.45bn, as part of plans to increase its presence in the US.
Morningstar has around 2,000 employees and operates ten manufacturing facilities in nine states of the US.
The company produces a variety of dairy and non-dairy extended shelf-life products, including iced coffee and value-added milks.
For the year ended 30 September 2012, Morningstar had revenues of around C$1.6bn.
The acquisition is expected to expand Saputo's product offering to customers in the US and broaden the range of future acquisition opportunities.
The combined business will have around 12,000 employees and 57 manufacturing facilities in five countries.
The transaction is subject to customary conditions (including regulatory approval) and is expected to close by the end of December 2012.