Saputo Inc has said it is looking for possible acquisitions in the Brazilian dairy market, and is ready to spend up to C$3.5bn on deals.
CEO Lino Saputo Jr. noted: “You have hundreds and hundreds of dairy players. If we found an interesting platform on the cheese side in Brazil that would allow us to be a consolidator, that’s essentially what we’re looking for.” However, he did not say if the group was in talks with any local firm.
Saputo also said the group is also looking at deals in other countries – such as Australia, New Zealand, and the US – noting that the global dairy industry is fragmented and offers potential opportunities for growth.
The comments came even as the group reported a 9% rise in fourth-quarter revenue to C$2.7bn, although net profit dropped by 10.3% to C$141.2m. The results were hurt by food price deflation.