Saputo Acquires US Dairy Product Producer Morningstar Foods

By Bizclik Editor


Saputo announced today its agreement to acquire Morningstar Foods, a US-based dairy product producer owned by Dean Foods Company. Purchasing Morningstar Foods for $1.45 billion, the transaction is still subject to customary conditions, but is expected to close at the end of December 2012.

"Morningstar is an attractive business and we believe that it will continue to grow and thrive in Saputo's portfolio. Today, Morningstar has substantial potential for accelerating growth through new distribution channels and new product categories.  I'd like to personally thank the Morningstar team for their contributions to Dean Foods over the past 15 years and wish them well as they move forward under new ownership. By joining Saputo, we believe Morningstar will be well positioned for continuing success and future growth,” said Gregg Engles, Chairman of Dean Foods.

Morningstar Foods specializes in the production of creams, creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, and cultured products such as sour cream and cottage cheese. Morningstar employs 2,000 across the US, operating 10 manufacturing facilities in 9 states.

“This is an exciting time for all of us at Morningstar. In recent years, the business has grown significantly faster than the industry, driven by strong execution, new product innovation and consumer trends that favor our products. Our employees and customers continue to be the centerpiece of our company. Our customer-centric business model and a disciplined cost control mindset have enabled our growth and we look forward to the next chapter in Morningstar's evolution,” said Kevin Yost, President, Morningstar Foods.



Click here to see the latest issue of Business Review North America

Saputo sees the benefit of acquisition due to Morningstar’s 2012 revenues which reached approximately $1.6 billion. This acquisition will expand Saputo’s product offering to the US and broaden its operational range as well as the potential for future acquisitions. 


Featured Articles

Possibilities endless as generative AI takes centre stage

Generative AI is already playing a pivotal role in the way companies are run; the only question is how quickly it can be integrated into everyday tasks

Why companies should be preparing for scope 3 reporting

With a decision looming on the SEC’s proposed changes to climate-related disclosures, leaders should be examining supplier sustainability credentials

People over profit is steering business in a new direction

An unsettling few years has resulted in more and more companies hiring Chief People Officers to implement a culture that prioritises employee wellbeing

Databricks: The phenomenal rise of a data and AI heavyweight

Technology & AI

Business Chief expands portfolio with new look and coverage

Leadership & Strategy

Google at 25: The remarkable rise of a technology colossus

Technology & AI