Saputo Enters Baking with Culinar Acquisition

Saputo Group Inc. announced Wednesday that it has finalized acquisition of Culinar, a baker and snack-cake maker, closing a deal announced on August 4. (See related article).

Culinar is the largest manufacturer of snack cakes and fine breads as well as the second largest cookie manufacturer in Canada. The company's range of well-established national and regional brands includes Vachon, Viau-McCormicks, Normandie, Grissol and Loney's. Culinar sells its products mainly on the retail market, across Canada.

The Toronto-based cheesemaker now owns the shares of Culinar held by SGF Soquia Inc., GID-Societe en commandite (Desjardins) and Capital d'Amerique CDPQ Inc. The purchase price for all shares is valued at $282.2 million (on a fully diluted basis) and was financed through a committed bank credit facility of $180 million and the issuance of 2,503,000 common shares of Saputo Group Inc., at a price of $39.95 per share, for a total consideration of approximately $100 million.

Saputo Group Inc. is a North American manufacturer of mozzarella and other cheeses including parmesan, ricotta, blue and Swiss. Saputo also manufactures and globally markets lactose and whey protein. The Company's leading brands are Saputo, Stella, Frigo and Dragone. In Canada, Saputo also operates a distribution network, through which the Group markets a broad assortment of non-dairy products to complement its cheese offerings.

With the acquisition of Culinar Inc., Saputo employs close to 5,000 people and operates nineteen distribution centers and fourteen plants in Canada as well as seventeen plants in the United States.