The transaction is expected to close on or around Sept. 29, 2017, Saputo said.
Saputo will be taking over Southeast Milk’s extended shelf life processing and manufacturing facility in Plant City, Florida, which employs approximately 66 people.
Saputo acquired Morningstar Foods from Dean Foods in January 2013, giving the company its first foothold in the US with the offering of dairy and non-dairy extended shelf life products.
The acquisition also adds to Saputo’s Dairy Foods Division in the US that currently includes Dairystar and Friendship Dairies, manufacturer of cottage cheese, sour cream, and buttermilk.
Avoiding closure
The Florida-based Southeast Milk dairy was formed in 1998 following the merger of two dairy cooperatives, Florida Dairy Farmers' Association and Tampa Independent Dairy Farmers' Association, Inc. It currently encompasses members across four states (Florida, Alabama, Georgia, and Tennessee). To date, Southeast Milk processes and sells approximately 3bn lbs. of milk annually.
Before the acquisition announcement, Southeast Milk originally planned to close the Plant City extended shelf-life processing facility earlier this year after three of its vendors did not renew contracts.
Southeast Milk posted annual sales of US$47m (C$59m) for the 12-month period ending June 30, 2017.