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Saputo, the Canadian dairy processor, has entered into a definitive agreement to sell an 80% interest in its Argentine dairy division to Gloria Foods for an enterprise value of approximately C$855 million ($630 million).
The transaction involves Molfino Hermanos, the Argentine subsidiary that operates two manufacturing facilities and owns local brands including La Paulina, Ricrem and Molfino. Saputo will retain a 20% minority stake in the business and expects to receive net proceeds of roughly C$543 million ($400 million) after tax. Following the close of the deal, which is expected in the first quarter of fiscal 2027, the unit will continue to manufacture select products for Saputo under supply agreements.
Commenting on the divestment, Saputo president and CEO Carl Colizza said: “Today’s announcement reflects our efforts to refine our global footprint for long-term growth. This divestiture enhances our financial flexibility and supports targeted reinvestment in platforms that offer the highest growth opportunities, while allowing us to maintain a portfolio of Argentina-sourced products for our international markets”.
The Argentine division generated approximately C$1.2 billion ($880 million) in revenue over the last four quarters, representing about 7% of Saputo’s consolidated sales. Saputo originally entered the Argentine market in 2003 through the acquisition of Molfino Hermanos.
Source: Saputo / FoodBev / Just Food
