CANADA &#8211, US dairy processor Saputo is to acquire the fluid milk and cheese operations of Dairyworld Foods for C$407 million (298 million euro).

Saputo says the acquisition is an important part of its objective to become a leading player in the North American dairy industry. Dairyworld operates 24 plants in Canada and generates annual sales of 1 billion euro. The company produces and markets a variety of dairy brands, including Dairyland, Baxter, Armstrong and Fraser Valley.

Camillo Lisio, Saputo president and chief executive, said: “We believe this transaction places us at the forefront of the Canadian dairy industry and we intend to work with all industry participants, so that we can successfully face the challenges that lie ahead.” The offer is on a debt-free basis and, subject to regulatory approval, is expected to be completed by January 2001. After the transaction, Saputo will have annual revenue of 2.5 billion euro and 55 plants in operation across North America.