Canadian dairy firm Saputo has signed a deal to acquire the Morningstar business of Dean Foods.

The US$1.45bn deal will be financed through a newly-committed bank loan, Saputo said today (3 December). The acquisition will help expand the firm’s product offering and distribution footprint in the US, as well as broaden its future acquisition opportunities, the firm said.

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Saputo added that it expected the transaction to boost its earnings immediately. The combined business will employ around 12,000 employees across 57 manufacturing facilities in five countries.

The transaction is subject to customary conditions and is expected to close by the end of December.

Saputo, along with US food group Michael Foods, was reported to be a frontrunner for the unit. Other bidders were reported to have included Mexican dairy company Grupo Lala and private-equity firm Apollo Global Management.

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