Saputo has struck a deal to sell an 80% stake in its Argentina dairy business to Grupo Gloria, handing control of the unit to the Peru-based group.
Canada-headquartered Saputo will keep a 20% holding in the operation, Molfino Hermanos, which runs two production sites and owns local brands such as La Paulina, Ricrem and Molfino.
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In a statement, Saputo said it “expects to receive net proceeds, after tax, of approximately C$543m ($400m)”.
Carl Colizza, the president and CEO of Saputo, said yesterday (12 February) the sale “enhances our financial flexibility and supports targeted reinvestment in platforms that offer the highest growth opportunities, while allowing us to maintain a portfolio of Argentina sourced products for our international markets”.
After the deal closes, Molfino Hermanos is set to continue making products for Saputo.
In its own statement, Grupo Gloria said it will also acquire 100% of Saputo Representação Comércial de Produtos Lácteos Brasil. Saputo made no mention of that element of the transaction in its statement.
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By GlobalDataJust Food has asked Saputo to confirm if the Brazilian asset will also change hands.
Overall, Grupo Gloria said the deal involves the payment of $500m.
Saputo said the Argentina business generated about C$1.2bn in revenue across the past four quarters, accounting for roughly 7% of the company’s turnover.
Argentina sits within Saputo’s international reporting segment, alongside its assets in Australia. In Saputo’s 2024/2025 financial year, which ended 31 March, the peso devaluation led to higher production costs in Argentina while the reduced availability of milk in the country further contributed to higher milk costs.
The adjusted EBITDA Saputo made from its international division that year also included “a non-cash negative impact” due to the application of hyperinflation accounting on the results of the business in Argentina.
Last week, Saputo reported the financial results for the third quarter of its current 2025/2026 financial year. The company said “improved economic conditions and milk availability” led to rising sales volumes in Argentina. It still felt a year-on-year negative impact on revenue from the the application of hyperinflation, although the picture improved when looking at adjusted EBITDA.
In an outlook statement for the rest of the financial year, Saputo added: “Argentina is expected to see increased milk availability, lower milk costs, a stronger export business, and a more stable relationship between currency and inflation.”
Saputo said the deal with Grupo Gloria is expected to be completed in the first quarter of its 2026/2027 financial year, subject to conditions including regulatory approval.
In March last year, Saputo sold its King Island Dairy operation in Australia, assets that included a production plant, the brand and two nearby farms supplying milk.
Speaking to analysts after the company reported its third-quarter results last week, Colizza gave a clear indication he is open to M&A to advance the dairy giant’s growth agenda.
“M&A, it’s part of our DNA. It’s always been part of our history,” Colizza said when asked about potential deals.
“Considering that our strategy is to grow as a business, M&A will be one of the contributors to how we will achieve incremental market penetration or expand in some channels, whereby the fastest path to capturing the opportunity will be through an acquisition.”
