Canadian dairy giant Saputo has agreed to acquire the activities of F&A Dairy of California, the company announced yesterday (23 June). No financial details were disclosed.
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F&A manufactures, sells and distributes, principally mozzarella, provolone and whey products from its facility in Newman, California, where it employs 113 employees.
For the year ended 31 December 2008, it produced around 60m pounds of cheese, with sales of about US$140m.
Saputo said the acquisition will “complement” the activities of its US division and will be paid in cash by drawing on available lines of credit.
The transaction is subject to the usual conditions and is expected to close around 20 July.
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By GlobalDataEarlier this month Saputo saw its annual profits fall, despite rising revenues as higher costs weighed on the company’s bottom line.
The company booked a 3.2% fall in net earnings to C$278.9m (US$252.9m) for the year to 31 March.
Sales climbed 14.5% to C$5.79bn but higher ingredients and fuel costs, as well as lower dairy products prices, weighed on Saputo’s profits.
