Saputo Buys Morningstar Foods, Maker of Friendship Cottage Cheese, for $1.45B
Morningstar will purchase equipment from WhiteWave Foods, which makes Silk soy milk and International Delight, for $60 million as part of the deal
Dean Foods Co. (NYSE: DF) is selling the Morningstar Foods division to Saputo Inc. for $1.45 billion.
Morningstar manufactures Friendship cottage cheese, creams, creamers, ice cream mixes, whipping cream, iced coffee, half and half and other products. The company is unrelated to Morningstar Farms, which makes vegetarian food. Saputo, based in Montreal, makes and distributes dairy products, including cheese, milk, yogurt and other dairy ingredients.
Morningstar Foods will buy certain equipment from the WhiteWave Foods Co. (NYSE WWAV) for $60 million, in connection with Dean Foods Co.’s sale of Morningstar.
The two companies have a previous relationship where Morningstar makes some of WhiteWave’s products with the equipment.
WhiteWave makes packaged food and beverages, including the Silk, International Delight and Land O Lakes products.
WhiteWave will continue its relationship with Saputo, which sells its products in Canada.
Dean expects to realize $887 million in proceeds that it will use to pay its senior secured credit facility.
Dean said in September that it was considering selling off the company, after it announced WhiteWave’s initial public offering in August.
Skadden Arps Slate Meagher & Flom LLP advised Dean Foods on the deal.
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