Saputo has agreed to sell an 80% stake in its dairy division in Argentina to regional major Gloria Foods.
The business forms just 7% of Saputo’s group revenue and is significantly exposed to FX effects, making it a volatile component of its international portfolio.
The business is valued at around US$630m and Saputo says its retained 20% stake will net US$400m in after‑tax proceeds.
The deal includes two factories and the local brands La Paulina, Ricrem and Molfino, with Gloria Foods set to continue manufacturing select items for Saputo.
Carl Colizza, Saputo president and CEO, said the decision “reflects our efforts to refine our global footprint for long‑term growth.”
“The value to be realized recognizes both the operational excellence of the team and the market strength of the brands they built,” he added.
“This divestiture enhances our financial flexibility and supports targeted reinvestment in platforms that offer the highest growth opportunities, while allowing us to maintain a portfolio of Argentina‑sourced products for our international markets.”