Saputo agrees to acquire business of Murray Goulburn Co-Operative

Saputo Inc., Montréal, said it entered into an agreement to acquire the business of Murray Goulburn Co-Operative Co. Ltd., based in Australia.

The purchase price for the transaction is CDN$1.29 billion on a debt-free basis and will be financed through a newly committed bank loan, Saputo said. The transaction, which was unanimously recommended by the Murray Goulburn board of directors in the absence of a superior proposal, is subject to the approval of Murray Goulburn shareholders and customary conditions — including foreign investment approval and clearance by the Australian Competition and Consumer Commission. It is also subject to an independent expert concluding that the transaction is in the best interest of Murray Goulburn shareholders. The transaction is expected to close in the first half of calendar year 2018.