April 24, 2013

Lactalis and Saputo in acquisition negotiations over cheese facility

    
French dairy group, Lactalis is negotiating for the acquisition of a cheese manufacturing plant, which is under the charge of Canadian dairy processor, Saputo, and based in Germany.

The German facility manufactures Italian specialty cheeses for the retail market segment, while the UK facility primarily produces mozzarella for the food service sector.

Saputo spokeswoman Sandy Vassiadis said that the company is in advanced stages of negotiations regarding a possible sale of the German facility.

The company will attempt to conclude the transaction by the end of April 2013, Vassiadis added.

If negotiations between Lactalis and Saputo are successful, about 70 jobs will be saved at the Heiden plant.

In February, Saputo announced the closure of the plant, and has proposed to shut down its facility in Wales, UK, citing challenging market conditions in Europe.