Canada-based dairy group Saputo is to acquire Neilson Dairy, the dairy division of Weston Foods (Canada).
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The CAD$465m (US$372m) acquisition, on a debt-free basis, is payable in cash from credit and additional committed financing, the company said today (22 October), and is expected to close on or around 24 November.
The transaction is subject to the usual conditions.
Weston Foods manufactures, sells and distributes – primarily in Ontario – fluid milk and dairy beverages, cream products and non dairy creamers, butter, yogurt, juices and drinks under the Neilson brand and other brands.
Neilson Dairy employs around 390 people at its two facilities located in Halton Hills and Ottawa, Ontario, and generates annual sales of around $600m and annual earnings before interest, income taxes, depreciation and amortization of around $50m.
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By GlobalDataSaputo said the transaction will enable it to increase the company’s presence in the Ontario fluid milk and cream market. Neilson Dairy primarily operates within the retail market segment and, as part of the transaction, Saputo will inherit Neilson Dairy’s long term relationships with its customers.
