The total consideration of $160 million on a debt-free basis will be paid in cash by drawing on available lines of credit. The transaction is subject to the usual conditions (including approval by the U.S. Anti-Trust authorities) and is expected to close in the course of March 2008.
Alto produces Italian- (mozzarella and provolone) and American-style cheeses (Cheddar varieties, Monterey Jack, Muenster, Fontina and Gouda), as well as whey products, which are marketed nationwide under a variety of brand names and private labels.
Alto has sales of $378 million and EBITDA of $19.6 million. It operates two plants respectively in Waupun and Black Creek, Wisconsin with a total of 467 employees.
This strategic transaction will enable Saputo Cheese Division to expand its business and represents a major step in its goal to achieve a stronger presence in the United States.
From the February 4, 2008, Prepared Foods e-Flash