MONTREAL (CP) — Canadian dairy giant Saputo Inc. has struck a US$160-million deal to acquire cheese maker Alto Dairy Co-operative, based in Waupun, Wis.
Alto had annual sales of about US$378 million in 2007 and operates two plants in Waupun and Black Creek, Wis., with a total of 467 employees.
The sale, endorsed by Alto's board of directors, is still subject to approval by the co-operative's members at a meeting Feb. 27, along with U.S. antitrust examination.
The price would be paid in cash by drawing on available lines of credit, Montreal-based Saputo said Tuesday.
Alto produces Italian-style cheeses — mozzarella and provolone — and American-style cheeses, cheddar varieties, Monterey Jack, Muenster, Fontina and Gouda, as well as whey products, which are sold nationally under a variety of brand names and private labels.
''This strategic transaction will enable Saputo Cheese Division (USA) to expand its business and represents a major step in its goal to achieve a stronger presence in the U.S.,'' Saputo said in a release.
Saputo is one of the top 20 dairy processors in the world, the largest dairy processor in Canada, among the top five cheese producers in the United States, the third-largest dairy processor in Argentina and the largest snack-cake manufacturer in Canada.
