Saputo Shells Out $1.45B For Dean Foods' Dairy Co.

Law360, New York (December 3, 2012, 4:25 PM EST) -- Canada's biggest dairy processor, Saputo Inc., has agreed to pay $1.45 billion for Morningstar Foods, the warehouse delivery dairy business that debt-heavy Dean Foods Co. put on the chopping block last quarter, the parties announced Monday.

Proceeds from the divestiture will help the Dallas-based seller right its highly leveraged balance sheet, while the debt-free purchase will allow Saputo — already one of the top three cheese producers in the U.S. — to grow its American business segment, according to parallel statements from the companies.

“Through this...
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