(Reuters) — Saputo Inc. is hungry for further acquisitions in Australia as well as in New Zealand, Brazil and the United States, says chief executive officer Lino Saputo Jr.
The company, which is Canada’s largest dairy producer, recently won control of the Warrnambool Cheese and Butter Factory Co. in Australia.
It gave no indication that further big purchases are imminent, but said the company had considered a play for Warrnambool for the past 10 years.
“Now with Warrnambool, we have a strong, solid platform in Australia,” Saputo said.
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“Perhaps there could be other small, tuck-in businesses in Australia.”
The company won majority control of Warrnambool in January, trumping separate approaches from WCB’s two largest shareholders: Australian-based Bega Cheese Ltd. and Murray Goulburn Co-operative Co. Ltd.
The acquisition expands Saputo’s operations beyond Canada, the United States and Argentina and gives it a platform to tap growing Asian demand.
Japanese beverage giant Kirin Holdings Co. Ltd., which owns a 10 percent stake in WCB through its local unit Lion, poses the last hurdle for Saputo to take full control of Warrnambool.
Saputo said the company hoped to move beyond 90 percent control by Feb. 12, when its offer for the company was scheduled to close. If not, he added, Warrnambool would be a strong subsidiary of Saputo Inc.
“Whether we have 100 percent or 90 percent or 80 percent, we’re still very delighted with this transaction (and) think as a subsidiary, this could be a very good platform for us,” Saputo said.
He said the company wants to facilitate some of the plans Warrnambool has long had in place but lacked the finances to execute. He also offered a vote of confidence in Warrnambool CEO David Lord.
“I have full confidence that David can manage that division very, very well,” Saputo said.
“With our financial support and perhaps some sales guidance, I think the division can flourish.”
