Saputo has signed an agreement to sell two milk processing plants in Australia to supermarket giant Coles Group for approximately $95 million.
The Canadian dairy giant says the fresh milk processing facilities are in the Australian states of Victoria and New South Wales.
Saputo says the deal is expected to close in the second half of the year and is subject to customary conditions, including clearance from the Australian Competition and Consumer Commission.
The Coles Group includes grocery stores, liquor stores, fuel retailers, convenience stores, a loyalty program and financial services.
Saputo says the sale will help streamline its operations and allow it to reinvest in other areas of its business.
CEO Lino Saputo says the company is continually working to ensure it has the right manufacturing footprint and product offering to improve its position as a high-quality, low-cost processor. .
“This is an important milestone on our journey towards our long-term vision for success in Australia. We continue to focus on efficiency to ensure we maximize the yield from every liter of milk,” he said in a statement.
Australia deregulated its dairy market and removed price support and quotas in 2000.
According to Saputo’s website, the company first entered Australia in 2014, acquiring a majority stake in Warrnambool Cheese and Butter Factory Co. Holdings Ltd.