Saputo sells majority stake in Argentina dairy division to Gloria Foods in US$630M Deal

ARGENTINA – Saputo Inc has announced that it has entered into a definitive agreement with Gloria Foods, the dairy and food holding company of Grupo Gloria, to sell an 80% interest in its Dairy Division (Argentina), valuing the business at an enterprise value of approximately (C$855 million) US$630 million.

With its retained 20% ownership interest, the Company expects to receive net proceeds, after tax, of approximately (C$543 million) US$400 million, subject to certain customary adjustments.

The closing of the transaction is expected to occur in the first quarter of fiscal 2027, subject to certain customary closing conditions, including the receipt of applicable regulatory approvals.

The transaction includes two manufacturing facilities as well as local brands, including La Paulina, Ricrem, and Molfino. Following the closing, the business will continue to manufacture select items on behalf of Saputo.

Over the last four quarters, the Dairy Division (Argentina) generated approximately $1.2 billion of revenues, which represented approximately 7% of consolidated revenues.

“Today’s announcement reflects our efforts to refine our global footprint for long‑term growth. The value to be realized recognizes both the operational excellence of the team and the market strength of the brands they built,” said Carl Colizza, President and CEO.

“This divestiture enhances our financial flexibility and supports targeted reinvestment in platforms that offer the highest growth opportunities, while allowing us to maintain a portfolio of Argentina‑sourced products for our international markets.”

“We are profoundly grateful to our colleagues in Argentina for their passion, dedication, and contributions to Saputo’s success, and we look forward to seeing these strong assets and brands continue to thrive under new ownership.”

The Company will continue to take a balanced approach to capital allocation. This framework supports organic growth while enabling strategic investments and returning capital to shareholders with a focus on share repurchases in the near term.

Grupo Gloria exits Puerto Rico market with sale of Suiza Dairy

Grupo Gloria finalized the sale of its operations in Puerto Rico, including its UHT milk production plant, Suiza Dairy Corporation, located in Aguadilla, as well as assets of Suiza Fruit Corporation in 2025.

Both entities now fall under the ownership of Suiza Caribe LLC, a subsidiary of CC1, the parent company of Coca-Cola Puerto Rico Bottlers.

This strategic divestment signals Grupo Gloria’s shift in focus away from Caribbean markets, potentially paving the way for deeper regional consolidation.

For CC1, the acquisition represents a major expansion into the dairy and juice segments, broadening its footprint beyond its already substantial beverage distribution network.

Industry analysts view the move as a realignment of key players in the region’s food and beverage landscape.

With CC1 taking the reins, Suiza Dairy and Suiza Fruit are expected to benefit from enhanced infrastructure, synergies in supply chain management, and potentially expanded distribution channels throughout Puerto Rico and neighboring markets.

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