Canadian cheese maker Saputo has announced that it has made a preliminary agreement to acquire Molfino Hermanos, Argentina's third-largest dairy processor, for US$50.8m.

Saputo said the acquisition of the company, from Molinos Rio de le Plata, is subject to conditions, including purchase price adjustments, reported Reuters. The deal is expected to be closed at the end of November.

Molfino operates two plants and employs 850 staff. It has sales of around $90m, of which exports account for 40%. The company makes various types of cheese, as well as butter, cream and milk powder.