The head of Canadian dairy giant Saputo has hinted that the company could make further acquisitions in what remains a “fragmented” dairy sector in the US.
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The acquisitions of Canada’s Neilson Dairy and US co-operative Alto Dairy helped boost Saputo’s earnings last year, although the group yesterday (9 June) booked falling profits across the business.
The company maintains a “disciplined” view on future acquisitions, president and CEO Lino Saputo Jr said, although the Saputo boss suggested the Canadian company could pounce south of the border again.
“Where as historically, even the nice-to-haves were being viewed and analysed, now we’re looking at the must-haves and the ones that really do make a lot of material sense,” Mr Saputo said.
“We’re happy with the platform in the US but understand that the US still is a very fragmented industry. I believe there still are some opportunities for acquisitions. If the right one comes along in our field where we believe it will add value to our business, we will not stop ourselves from being part of the process.”
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By GlobalDataHowever, the Saputo president and CEO played down the prospect of purchases in Europe. Mr Saputo said the tough conditions in the European dairy sector, where the group owned operations in the UK and Germany, made further acquisitions unlikely.
“Given the current economic condition of the dairy industry in Europe, I would not see a huge acquisition from Saputo’s side in Europe at this stage,” he said.
