Canadian dairy products maker Saputo has signed an agreement to acquire the fluid milk business of Scotsburn Co-Operative Services for $61m to expand its presence in Atlantic Canada.
Scotsburn Fluid Milk Business operates two processing plants in Sydney, Nova Scotia, and Mount Pearl, Newfoundland, and employs about 400 people in Atlantic Canada.
The business generates sales of about $160m per year by manufacturing, selling, marketing, distributing and merchandizing of products such as fluid milk, cream, sour cream, ice cream mix and cottage cheese, under the Scotsburn brand, the company said.
The debt-free purchase will not include about $8m of working capital items, and is payable in cash by drawing on available credit lines.
Expected to close by the end of March 2014, the transaction is subject to the approval of Scotsburn co-op members and the Canadian Competition Bureau.
Scotsburn will focus on its other activities like frozen ice cream and frozen novelties business.
