MONTREAL – Global dairy giant Saputo Inc. is strengthening its portfolio of non-dairy cheeses and value-added ingredients with two new acquisitions.
The Montreal-based dairy processor and cheese maker said on Tuesday it had completed the acquisition of Bute Island Foods, a vegan cheese maker, distributor and distributor.
The Scottish company serves both the retail and foodservice markets under its award-winning vegan brand Sheese as well as through private labels.
Saputo also entered into an agreement to acquire the Reedsburg, Wisconsin, plant from Wisconsin Specialty Protein, which manufactures value-added ingredients such as goat whey, organic lactose and other dairy powders.
The dairy company said the two acquisitions, which cost a combined $ 187 million, are in line with the company’s new global strategic plan that will be discussed during its year-end results presentation next week.
Saputo CEO and Chairman of the Board, Lino Saputo Jr., said the acquisition of Bute Island Foods reflects the company’s continued efforts to expand its presence in the dairy substitute sector.
“Our commitment remains to expand our footprint in the dairy substitute space to meet the changing demands of our customers and consumers,” Saputo said in a statement.
“This investment marks an important step that will allow us to accelerate our growth in this area on a global scale, by putting innovation at the forefront of our priorities.”
The company, located off the west coast of Scotland, has around 180 employees, while Wisconsin Specialty Protein has around 40 employees.
The Wisconsin specialty protein deal is expected to close at the end of May and “will allow Saputo to expand and increase the value of its ingredient offering,” the company said.
The deal will also enhance its portfolio in the United States and abroad, Saputo added.
The two acquisitions will strengthen Saputo’s global portfolio of strong assets and brands, said Irene Nattel, analyst at RBC Dominion Securities Inc.
“Although these combined transactions are relatively small, they strengthen (Saputo) ‘s positioning as one of the world’s top 10 dairy producers with market leading positions in virtually all of the attractive global milk sheds,” he said. – she declared in a note to customers.
“The two acquisitions are in line with (Saputo’s) strategy to expand its assortment of dairy substitutes and value-added ingredients and accelerate growth through strategic investments, large and small, with a view to doubling revenues. over time through selective and disciplined acquisitions. “
This report by The Canadian Press was first published on May 25, 2021.
Companies in this story: (TSX: SAP)
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