Canada’s Saputo Issues Placement to U.S. Investors
June 25, 2009
Montreal-based diary products company Saputo Inc. issued a Canadian-dollar denominated private placement to three U.S. investors, according to reports.
The C$330 million ($284.8 million) deal consisted of C$110 million of five-year Series A senior notes priced to yield 5.34%, and C$220 million of seven-year Series B senior notes priced to yield 5.82%.
Saputo is publicly-traded on the Toronto Stock Exchange [Ticker:SAP] and has a market cap of C$4.77 billion. The company produces, markets, and distributes a variety of dairy products and other food products under many different brands. Saputo’s products are sold in more than 40 different countries and the company is “the 11th largest dairy processor in the world, the largest in Canada, and the third largest in Argentina,” according to information on its Web site.
One June 23, Saputo announced plans to expand its presence in California by acquiring F&A Dairy of California Inc. Based in Newman, Calif., F&A is a manufacturer and distributor of cheese products and has annual sales of about $140 million. According to a Saputo press release, the acquisition will be paid in cash by drawing on available lines of credit.
For the full year ended March 31, 2009, Saputo reported revenues of C$5.79 billion and net earnings of C$278.9 million, versus revenues of C$5.05 billion and net earnings of C$288.2 million for the year ended March 31, 2008.—GC
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