Saputo acquires activities of Murray Goulburn in Australia

Canadian dairy company Saputo said it has acquired the activities of Australia’s Murray Goulburn (MG).

The transaction was first announced in October last year, when Saputo agreed to acquire the Australian co-operative for C$1.29bn ($1bn) on a debt-free basis.

MG is engaged in the production of a wide range of dairy foods, including cheese, butter, and milk powder, as well as dairy beverages, and a range of ingredient and nutritional products, such as infant formula.

The company supplies its products to the retail and foodservice industries internationally under its Devondale, Liddells, and MG Ingredients brands.

Last month, the Australian Competition and Consumer Commission approved Saputo’s proposed acquisition of MG’s assets, after accepting an undertaking from Saputo to divest MG’s Koroit plant.

MG currently operates seven manufacturing facilities across Australia, and one in China. Through the acquisition, Saputo intends to strengthen its presence in the Australian market.

Going forward, the Canadian company will be making further investments in the existing business and contribute to the on-going development of its domestic and international business.

Moelis Australia serves as financial advisor to Saputo, while Ash St. Partners and Clayton Utz acted as legal counsel.