Saputo Inc. has signed a definitive agreement with Gloria Foods, Grupo Gloria's dairy and food holding company, to sell an 80% stake in its Dairy Division (Argentina). The transaction values the business at approximately $855 million (US$630 million), a figure that provides a more accurate indication of the asset's industrial scale than the previously disclosed net proceeds alone.
By retaining a 20% stake, Saputo expects to receive net proceeds, after taxes, of approximately CAD $543 million (USD $400 million), subject to customary adjustments. Closing is expected in the first quarter of fiscal 2027, subject to customary closing conditions, including regulatory approvals.
The scope of operations includes two production plants and historic brands in the Argentine market, such as La Paulina, Ricrem, and Molfino. Following the closing of the transaction, the division will continue to produce select products on behalf of Saputo, ensuring industrial and commercial continuity. Over the last four quarters, the Argentine division generated revenues of approximately CAD $1,2 billion, equal to approximately 7% of the group's consolidated revenues. Before the divestment, Saputo was the country's leading dairy operator.
CEO Carl Colizza emphasized that the transaction is part of a process of streamlining the global footprint to support long-term growth, while recognizing the operational value built by the local team and the strength of the brands. The sale strengthens the group's financial flexibility and supports a plan to selectively reallocate capital toward platforms with greater growth potential, while maintaining a portfolio of Argentine-sourced products destined for international markets.
Regarding capital allocation, the company reaffirmed a balanced approach combining organic growth, strategic investments, and capital return to shareholders, with a short-term focus on share buybacks. The restructuring confirms a dynamic portfolio management strategy, already evidenced by previous divestitures, and paves the way for new M&A opportunities consistent with the goal of strengthening penetration in key markets and higher-margin segments. With this transaction, Grupo Gloria consolidates its presence in the South American dairy sector, while Saputo focuses financial and managerial resources on geographic areas and categories deemed most strategic for the next global growth cycle.
