Canadian dairy processor Saputo Inc. has entered an agreement to purchase Southeast Milk, Inc.’s extended shelf-life dairy product activities. The purchase includes a processing plant in Plant City, Florida, which employed 66 people. By: Wyatt Bechtel
The extended shelf-life dairy products produced an annual revenue of $47 million for Southeast Milk looking at a 12-month period ending on June 30, 2017.
The transaction between Saputo and Southeast Milk is under review and is expected to close by September 29, 2017.
Earlier in August the Tampa Bay Business Journal reported that Southeast Milk planned to close the processing plant because three major milk vendors did not renew contracts.
Saputo operates a U.S. division that includes the Dairystar and Friendship Dairies brands and markets a number of products under the label, including: milk, cottage cheese, ice cream, creamers and whipped cream.
Prior to the acquisition of Southeast Milk’s extended shelf-life processing, Saputo had acquired Morningstar Foods from Dean Foods Company in 2013 which gave the company an offering dairy and non-dairy extended shelf-life in the U.S. Other U.S. processing plants have been purchased in the past decade such as two California cheese plants and a Wisconsin cheese plant.
In all Saputo has 50 manufacturing facilities in Canada, the U.S., Australia and Argentina, employing approximately 12,800 people.
Southeast Milk primarily sources milk from cooperative members in Florida and also has membership in Georgia, Alabama and Tennessee.
Source: Dairy Herd