Saputo (TSX:SAP) Inc revealed that it has inked a definitive agreement to sell two fresh milk processing facilities to Coles Group Limited, an Australia-based supermarket chain, in a transaction valued at C$95 million.
The Canadian dairy giant says the fresh milk processing facilities are in the Australian states of Victoria and New South Wales.
Saputo (TSX:SAP) 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.
Meanwhile, it said the sale will help streamline its operations and allow it to reinvest in other areas of its business.
“We’re continually working to ensure we have the right manufacturing footprint and product offering to enhance our position as a high-quality, low-cost processor,” said Saputo CEO Lino Saputo.
“This marks an important step in executing our long-term vision for success in Australia as we maintain a sharp focus on efficiency to ensure we maximize the return on every litre of milk.”
Coles Group includes grocery stores, liquor stores, fuel and convenience retailers, a loyalty program and financial services.
Saputo produces, markets, and distributes a wide array of dairy products, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients.
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