Montreal-based dairy and cheese giant Saputo has agreed to buy one of Australia’s largest milk processors, Warrnambool Cheese and Butter Factory Co. Holdings Ltd. for C$378 million. Saputo is one of the top 10 dairy processors in the world and is the largest in Canada. The company has been seeking to expand its cheese business into Oceania. Warrnambool supplies raw milk to Asia which is one of Saputo’s main existing export markets and produces milk products, cheese, butter, butter blends, cream, and dairy ingredients at its two manufacturing sites in Australia. Saputo will be financing the deal through a new three year bank loan. The value of Warrnmabool has been set at C$450 million including C$73 million in debt as of June 30th.
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