Saputo to buy U.S. dairy supplier Morningstar from Dean Foods for US$1.45B
Montreal-based cheese maker Saputo Inc. will pay US$1.45 billion to buy Morningstar Foods, a U.S. company that makes a variety of dairy and non-dairy products.
Morningstar has about 2,000 employees and 10 manufacturing plants in the United States.
It had the equivalent of C$1.6 billion in revenue during the 12 months ended September.
By comparison, Saputo (TSX:SAP) had about $1.7 billion of revenue in its second quarter alone.
The company says the addition of Morningstar will immediately bolster Saputo's earnings.
Saputo has said it plans to expand in the United States but has downplayed speculation it might acquire the company that makes Twinkies snack cakes.