FDBusiness.com

$1.5 Billion US Dairy Deal Completed

 Breaking News
  • Danone Investing €280 Million at Evian Production Site Danone has opened a state-of-the-art production facility at Evian-les-Bains in the French Alps to support the future growth of evian, the international water brand that is sold in more than 140 countries. After six years of construction and transformation, the new look site combines greater operational efficiency, new technology and the highest quality processes with [...]...
  • European Grocery Shoppers Become Digital Infoseekers as Cost of Shopping Continues to Rise According to a survey of European shoppers by IRI, the big data and technology expert for consumer industries, the increasing use of the Internet, particularly via smart phones, is helping shoppers to find information on promotions and offers that will help them reduce the cost of their grocery shop. The survey, which was conducted among shoppers [...]...
  • California Almonds Continue to Inspire New Products Worldwide New data from Innova Market Insights reveals that California almonds were the number one nut used in new products worldwide in 2016, the tenth year that almonds have held the lead position for nuts used in new product introductions. According to the Innova Global New Products Report, almonds were featured in 38 percent of new [...]...
  • Premium Shelf Presentation – Marel Linerless Wraparound Labeler Consumers feel much more tempted to buy poultry meat products when trays are attractively packed and labeled. It is therefore of high importance to present a premium presentation. The new Marel M360 labeler will provide wrap-around labels with great shelf impact. Marel’s M360 standard wrap-around labeler makes use of the latest technologies in flexible linerless labeling. [...]...
  • Springhill Farms Upgrade – Biomethane to the Grid and CO2 to the Tomatoes In the heart of the English countryside, Springhill Farms makes the very most of agricultural waste. Upgraded biogas is injected into the national gas grid, while the carbon dioxide (CO2) by-product goes straight to the farms’ tomato greenhouses. The gas produced during anaerobic digestion consists roughly of 60 percent methane and 40 percent CO2. Until recently, [...]...

$1.5 Billion US Dairy Deal Completed

$1.5 Billion US Dairy Deal Completed
January 04
11:48 2013

Dean Foods, one of leading food and beverage companies in the United States, has completed the sale of its Morningstar Foods division to Canadian dairy group Saputo for $1.45 billion.  Morningstar Foods is a leading manufacturer of dairy and non-dairy extended shelf-life and cultured products, including creams and creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, sour cream and cottage cheese. The transaction includes the operations of Morningstar Foods including approximately 2,000 employees and 10 manufacturing facilities in 9 states.

Gregg Tanner, chief executive of Dean Foods, says: “Dean Foods will use substantially all of the net proceeds from the sale of Morningstar to significantly reduce outstanding debt, resulting in a stronger balance sheet and increased flexibility to execute against our strategies for our core dairy business.” As a result of this transaction, Dean Foods expects to realise approximately $887 million in proceeds, net of taxes and expenses.

The acquisition of Morningstar will complement the activities of the Saputo Dairy Products Division (USA). Through this acquisition, Saputo will benefit from Morningstar’s national manufacturing and distribution footprint and will optimise coast-to-coast service. This transaction will expand product offering to customers in the United States and broaden the range of Saputo’s future acquisition opportunities. The net purchase price represents for Saputo. a multiple of 7.9x Morningstar’s EBITDA.

Saputo produces, markets, and distributes a wide array of products, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the 12th largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 22, 2017Global Summit on Food & Beverages
  • September 26, 2017FHM2017
  • September 26, 2017POWTECH
  • October 7, 2017ORGANIC TRADE FORUM 2017 (Anuga)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements