Saputo buys milk biz for $61-million
After sale, Nova Scotia Co-op Scotsburn Co-operative Services will keep ice cream and frozen novelties business.
January 21, 2014
by The CANADAN PRESS
MONTREAL—Dairy company Saputo has signed a $61-million deal to buy the milk business of Nova Scotia’s Scotsburn Co-operative Services.
Scotsburn will keep its ice cream and frozen novelties business.
The co-op operates two milk processing facilities located in Sydney, N.S., and Mount Pearl, N.L., employing about 400 people.
The operations produce and sell milk, cream, sour cream, ice cream mix and cottage cheese, mainly under the Scotsburn brand.
The business generates about $160-million in annual sales and $8-million in pre-tax operating profits.
Saputo says the acquisition will increase its presence in Atlantic Canada.
The deal, which is subject to approval from co-operative members and regulators, is expected to close around March.