Saputo Inc. Acquires DCI Cheese Co. to Increase Presence in U.S. Specialty Cheese Category

February 17, 2011 04:25 AM
 

Purchase price is $270.5 million for Saputo, 12th largest dairy processor in the world

Source: Saputo news release
 
To increase its U.S. presence in the specialty cheese category, Canadian-based Saputo Inc. has signed an agreement to acquire Fairmount Cheese Holdings Inc., the parent company of DCI Cheese Company Inc. (DCI).
 
The purchase price is U.S. $270.5 million.
 
Saputo is the 12th largest dairy processor in the world, the largest in Canada, the third largest in Argentina, among the top 3 cheese producers in the United States and the largest snack-cake manufacturer in Canada.
 
DCI is one of the largest specialty cheese marketers in the U.S., Saputo said in today’s announcement.
 
DCI sells and distributes specialty cheese from its cut-and-wrap facility in Green Bay, Wis., and from its Carlstadt, N.J. distribution center. DCI holds an portfolio of import licenses for specialty cheese manufactured abroad and also manufactures and sells in the retail market other products such as spreads, salsa, hummus and dips from the Santa Rosa, Calif., facility. DCI has a total of approximately 475 employees.
 
For the year ended Dec. 31, 2010, DCI had sales of about U.S. $460 million, EBITDA of approximately U.S. $34 million and sales volumes of about 160 million pounds.
 
The purchase price of $270.5 million on a debt free basis will be paid in cash from liquidity and/or by drawing on available lines of credit. The transaction is subject to usual conditions (including regulatory approval) and is expected to close in the course of March 2011.
 
DCI has an extensive product portfolio consisting of over 100 types of domestic and imported specialty cheeses. DCI markets its products nationwide under a variety of brand names such as County Line, Great Midwest, Joan of Arc, King's Choice, Nikkos, Salemville, il Giardino and Organic Creamery, as well as under private labels.
 
In addition to increasing its presence in the specialty cheese category in the U.S., Saputo said the acquisition would complement the activities of its Saputo Dairy Products Division (USA).

Saputo produces, markets and distributes a wide array of products, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Its products are sold in more than 40 countries under brand names such as Saputo, Alexis de Portneuf, Armstrong, Baxter, Dairyland, Danscorella, De Lucia, Dragone, DuVillage 1860, Frigo Cheese Heads, Kingsey, La Paulina, Neilson, Nutrilait, Ricrem, Stella, Treasure Cave, HOP&GO!, Rondeau and Vachon.
 
Saputo is a publicly traded company whose shares are listed on the Toronto Stock Exchange under the symbol SAP.
 

Back to news


 

Comments

 
Spell Check

No comments have been posted to this News Article

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close