Saputo announced today its agreement to acquire Morningstar Foods, a US-based dairy product producer owned by Dean Foods Company. Purchasing Morningstar Foods for $1.45 billion, the transaction is still subject to customary conditions, but is expected to close at the end of December 2012.
"Morningstar is an attractive business and we believe that it will continue to grow and thrive in Saputo's portfolio. Today, Morningstar has substantial potential for accelerating growth through new distribution channels and new product categories. I'd like to personally thank the Morningstar team for their contributions to Dean Foods over the past 15 years and wish them well as they move forward under new ownership. By joining Saputo, we believe Morningstar will be well positioned for continuing success and future growth,” said Gregg Engles, Chairman of Dean Foods.
Morningstar Foods specializes in the production of creams, creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, and cultured products such as sour cream and cottage cheese. Morningstar employs 2,000 across the US, operating 10 manufacturing facilities in 9 states.
“This is an exciting time for all of us at Morningstar. In recent years, the business has grown significantly faster than the industry, driven by strong execution, new product innovation and consumer trends that favor our products. Our employees and customers continue to be the centerpiece of our company. Our customer-centric business model and a disciplined cost control mindset have enabled our growth and we look forward to the next chapter in Morningstar's evolution,” said Kevin Yost, President, Morningstar Foods.
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Saputo sees the benefit of acquisition due to Morningstar’s 2012 revenues which reached approximately $1.6 billion. This acquisition will expand Saputo’s product offering to the US and broaden its operational range as well as the potential for future acquisitions.