Saputo Buying Land O'Lakes' CPI Assets
It is anticipated that the transaction will close, subject to regulatory review, in April 2007.
The manufacturing and cut-and-wrap facilities employ approximately 530 full-time and part-time workers.
"We are very pleased to have found a strategic buyer for these facilities, as well as to have secured a long-term milk supply agreement for our members' milk production," said Land O'Lakes President and Chief Executive Officer Chris Policinski.
"Land O'Lakes heritage for more than 85 years has been to add value to our members' milk production primarily through the marketing of branded, value- added dairy products. At the same time, we have maintained our commitment to providing a secure outlet for member milk, supported by appropriate investments and partnerships in manufacturing. This sale and milk supply agreement are consistent with that heritage and our business strategy."
Land O'Lakes will continue to operate cheese manufacturing facilities in Tulare and Orland, Calif., Melrose, Minn., Denmark and Kiel, Wis., and a cheese processing facility in Spencer, Wis.