Update, 12/5/12, 5:40 EST: Information about the Jones Day and Stikeman Elliot lawyers advising Saputo Inc. on its acquisition of Morningstar Foods have been added to the fifth and sixth paragraphs of this story.
Canada’s largest dairy producer has whipped up a deal that will expand its presence in the United States.
Montreal-based Saputo Inc. said Monday that it has agreed to pay $1.45 billion in cash to acquire Dean Foods Company’s Morningstar Foods unit. Morningstar makes a range of dairy productsincluding creamers, aerosol whipped toppings, and cottage cheesethat it sells to grocery stores and restaurant chains across the U.S. (The business is not related to Morningstar Farms, which makes vegetarian food products and is owned by the Kellogg Company.) The deal is expected to close by the end of the year, pending regulatory approval.
Morningstar, which employs 2,000 people and runs 10 manufacturing sites in the U.S., had about $1.6 billion in revenue in the financial year ending September 30. In announcing the transaction, Saputo said the acquisition would enhance its U.S. footprint while potentially paving the way for future acquisitions.
Saputo, which makes dairy products and baked goods, already sells a variety of cheese brands in the U.S. (Saputo is also Canada’s largest snack-cake maker and holds Canadian trademarks for Hostess products like Twinkies and Wonder Bread, which the company will continue to manufacture no matter the result of Hostess’s ongoing liquidation process.)
Saputo turned to attorneys at Jones Day for legal advice on this acquisition. The firm’s team on the matter is being led by M&A partner Phil Stamatakos and M&A associate Adam Schaeffer, both of whom are based in Chicago.
