A Canadian cheese maker company, Saputo Inc., have publically announced their plan to acquire a U.S. company, Morningstar Foods, in a US$1.45 billion deal. Morningstar Foods reportedly produces large variety of dairy and non-dairy products such as creams, ice cream mixes, sour cream and cottage cheese.
An official statement released from Saputo alleged that “through this acquisition, Saputo will benefit from Morningstar’s national manufacturing and distribution footprint and will optimize coast-to-coast service.” The statement added that “this transaction will expand product offering to customers in the United States and broaden the range of Saputo’s future acquisition opportunities.”
Morningstar currently holds 2,000 employees and 10 manufacturing plants spread all over the United States. The company calculated estimated revenue of C$1.6 billion in the span 12 months ending this September. Whereas the Montreal-based Saputo has considered revenue of approximately $1.7 billion in its second quarter alone from cheese, dairy and bakery operations in Canada, the United States and other countries. Saputo claims to have plans to extend its business in the United States by downplaying speculation it might acquire the assets of the bankrupt company that makes Twinkies snack cakes. After the deal is finalized, Saputo will be having a total of 12,000 employees and 57 manufacturing plants in five countries.
Chairman of Dean Foods, parent company of Morningsta, Gregg Engle, stated that “Morningstar is an attractive business and we believe that it will continue to grow and thrive in Saputo’s portfolio.” He added that “I’d like to personally thank the Morningstar team for their contributions to Dean Foods over the past 15 years and wish them well as they move forward under new ownership.”
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