Saputo to pay CDN$1.29 billion for Australia's Murray Goulburn

1 Nov 2017

Canadian dairy company Saputo is to acquire the business of Murray Goulburn Co-Operative (MG), based in Australia.

The purchase price for the transaction is CDN$1.29 billion (A$1.31 billion).

Saputo to pay CDN$1.29 billion for Australia's Murray Goulburn

Canadian dairy company Saputo is to acquire the business of Murray Goulburn Co-Operative (MG), based in Australia.

The purchase price for the transaction is CDN$1.29 billion (A$1.31 billion) and is expected to close in the first half of calendar year 2018.

MG produces a full range of dairy foods, including drinking milk, milk powder, cheese, butter and dairy beverages, as well as a range of ingredient and nutritional products, such as infant formula. MG supplies the retail and foodservice industries globally with its Devondale, Liddells and Murray Goulburn Ingredients brands. Murray Goulburn has approximately 2,300 employees and operates 11 manufacturing facilities across Australia and China.

For the twelve-month period ended on June 30, 2017, MG had revenues of approximately CDN$2.5 billion (A$2.5 billion) and adjusted EBITDA of approximately CDN$78 million (A$79 million).

The acquisition of Murray Goulburn will add to and complement the activities of Saputo's Dairy Division (Australia), the company said. By acquiring a well-established industry player, Saputo said it reinforces its commitment to strengthen its presence in the Australian market. Saputo intends to continue to invest in its Australian platform and contribute to the ongoing development of its domestic and international business.