Canadian dairy company Saputo has entered into an agreement to sell two fresh milk processing facilities in Laverton North, Victoria, and Erskine Park, New South Wales, to Coles Group, the Australia-based supermarket, retail, and consumer services chain.
The deal is valued at approximately CDN$95 million (€64.9 Million), the dairy firm noted.
Saputo claims this move is in line with the company’s global strategic plan and will enable Saputo to further streamline its operating model, adjust its manufacturing network to strengthen market competitiveness, and allow it to reinvest in areas of the business that will result in more 'value creation opportunities.'
'An Important Step'
“We’re continually working to ensure we have the right manufacturing footprint and product offering to enhance our position as a high-quality, low-cost processor,” said Lino A Saputo, chair of the board, president and CEO.
“This marks an important step in executing our long-term vision for success in Australia as we maintain a sharp focus on efficiency to ensure we maximise the return on every litre of milk,” Saputo added.
The transaction is subject to customary conditions, including the clearance from the Australian Competition and Consumer Commission, and is expected to close in the second half of 2023.
In March of this year, Saputo announced the appointments of Frank Guido as president and chief operating officer of its dairy division in USA, and Haig Poutchigian as president and chief operating officer of the unit in Canada.
These changes came into effect on 1 April 2023.
“Frank and Haig stepping into these roles reflects our deep bench of talent and leadership that can move cross-divisionally as our company continues to grow,” Saputo added.
“I have tremendous confidence in these two outstanding leaders and the value they will continue to bring to our organisation as we build on our current momentum and advance the company’s strategic objectives.”
© 2023 European Supermarket Magazine – your source for the latest supply chain news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.