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Saputo Inc. acquires Neilson Dairy

Date Closed

December 1, 2008

Lead Office



465.00 Million CAD

On  December 1, 2008, Saputo Inc. completed  the transaction announced on October 22, 2008 and acquired the activities of Neilson Dairy, the dairy division of Weston Foods (Canada) Inc. which manufactures, sells and distributes, primarily in Ontario, fluid milk and dairy beverages, cream products and non dairy creamers, butter, yogurt, juices and drinks under the Neilson brand and other brands (Neilson Dairy).

Neilson Dairy employs approximately 390 people at its two facilities located in Halton Hills and Ottawa, Ontario. It generates annual sales of approximately C$600 million and annual earnings before interest, income taxes, depreciation and amortization of approximately C$50 million. The purchase price of C$465 million on a debt-free basis was paid in cash by drawing on available lines of credit and additional financing.

This transaction will enable Saputo Dairy Products Division (Canada) to increase its presence in the Ontario fluid milk and cream market. Neilson Dairy primarily operates within the retail market segment and, as part of the transaction, Saputo inherits Neilson Dairy’s long term relationships with its customers.

Saputo Inc. (TSX: SAP) is a Montreal-based Canadian dairy company. Founded as a cheese making company in 1954 by Italian immigrant Giuseppe Saputo, today Saputo's business includes dairy products, and it is the tenth largest dairy processors in the world.[3] After growing in its home region of Quebec, the company has expanded by mergers and acquisitions.

McCarthy Tétrault LLP advised the lenders to Saputo with a team led by Michel Deschamps and Mathieu Dubord.