Saputo Enters Agreement to Divest Majority Stake in its Argentina Operations, Enhancing Strategic Focus and Capital Flexibility

Core Viewpoint - Saputo Inc. has entered into a definitive agreement to sell an 80% interest in its Dairy Division (Argentina) to Gloria Foods, valuing the business at approximately $855 million, with expected net proceeds of about $543 million after tax [1][2][3] Financial Summary - The Dairy Division (Argentina) generated approximately $1.2 billion in revenues over the last four quarters, accounting for about 7% of Saputo's consolidated revenues [2] Strategic Implications - The divestiture is part of the company's strategy to refine its global footprint for long-term growth, enhancing financial flexibility and allowing for targeted reinvestment in higher growth opportunities [3] - The company will maintain a 20% ownership interest in the Dairy Division (Argentina) and continue to manufacture select items on behalf of Saputo [1][2] Operational Details - The transaction includes two manufacturing facilities and local brands such as La Paulina, Ricrem, and Molfino [2] - The closing of the transaction is expected in the first quarter of fiscal 2027, pending customary closing conditions and regulatory approvals [1]