Saputo Dairy Australia welcomes ACCC Inquiry decision
1 December 2023
Saputo Dairy Australia (SDA) is pleased with the Australian Competition and Consumer Commission’s (ACCC) decision not to oppose the sale of its two fresh milk manufacturing sites at Laverton North and Erskine Park to Coles Group Limited.
Fresh milk products remain an important part of SDA’s business and as part of the sale agreement with Coles Group Limited, SDA will continue to have fresh milk products processed at the two manufacturing facilities.
There will also be no changes to SDA’s valued farmer relationships. SDA retains its direct Milk Supply Agreements with farmers, and suppliers’ milk will continue to be collected and processed throughout Victoria, New South Wales, South Australia and Tasmania.
Approximately 48 roles across the two sites will transfer to Coles Group Limited upon completion of the sale process, which is expected to occur towards the middle of calendar 2024.
SDA will continue to work closely with Coles Group Limited to finalise the transaction and ensure the transition has minimal impact on operations and all stakeholders involved.
With a long-term vision for success in Australia, SDA remains committed to the Australian dairy industry. The company will continue to make investment and strategic decisions to maximise its return for every litre of milk and further strengthen its position as a high-quality, low-cost processor.
About Saputo Dairy Australia
Saputo Dairy Australia produces, markets and distributes a wide range of high-quality dairy and non-dairy products for the domestic and international markets including cheese, dairy alternative cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Saputo is a leading dairy processor in Australia and is part of Saputo Inc., one of the top ten dairy processors in the world. Saputo Dairy Australia products are sold in several countries under well-known brand names such as Caboolture, CHEER™, Cracker Barrel*, Devondale, Great Ocean Road, King Island Dairy, Liddells,
Mersey Valley, MG Ingredients, Mil Lel, Sheese, South Cape, Sungold and Tasmanian Heritage.
Visit us online: www.saputodairyaustralia.com.au | www.saputo.com
*Cracker Barrel is a registered trademark of Lactalis Heritage Dairy used under licence.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This media release contains statements which are forward-looking statements. These forward-looking statements include, among others, statements with respect to the expected sale of two processing facilities, SDA’s production, packaging, employees, consumers, customers, suppliers, projects and objectives. The words “may”, “could”, “should”, “will”, “would”, “believe”, “plan”, “anticipate”, intend” or “expect”, or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward-looking statements. All statements other than statements of historical fact included in this news release may constitute forward-looking statements within the meaning of applicable securities laws.
By their nature, forward-looking statements are subject to inherent risks and uncertainties. Actual results could differ materially from those stated, implied, or projected in such forward-looking statements. As a result, Saputo Inc. and SDA cannot guarantee that any forward-looking statements will materialize, and we warn readers that these forward-looking statements are not statements of historical fact or guarantees of future performance in any way. Assumptions, expectations, and estimates made in the preparation of forward-looking statements and risks and uncertainties that could cause actual results to differ materially from current expectations are discussed in our materials filed with the Canadian securities regulatory authorities from time to time, including the “Risks and Uncertainties” section of the Management's Discussion and Analysis dated June 8, 2023, available on SEDAR+ under Saputo's profile at www.sedarplus.ca, and also include the following: Saputo Inc. and SDA’s ability to implement capital investment, consolidation and network optimization initiatives as planned, Saputo Inc. and SDA’s ability to achieve productivity and efficiency gains resulting from such initiatives, uncertainties as to the timing of the intended sale; the risk that the intended sale may not be completed in a timely manner or at all, and the possibility that any or all of the various conditions to the consummation of the intended sale may not be satisfied or waived.
Forward-looking statements are based on Management’s current estimates, expectations and assumptions. Management believes that these estimates, expectations, and assumptions are reasonable as of the date hereof, and are inherently subject to significant business, economic, competitive, and other uncertainties and contingencies regarding future events, and are accordingly subject to changes after such date. Forward-looking statements are intended to provide stakeholders with information regarding Saputo Inc. and SDA, and may not be appropriate for other purposes. Undue importance should not be placed on forward-looking statements, and the information contained in such forward-looking statements should not be relied upon as of any other date.
Unless otherwise indicated by Saputo Inc. or SDA, forward-looking statements in this news release describe our estimates, expectations and assumptions as of the date hereof, and, accordingly, are subject to change after that date. Except as required under applicable securities legislation, Saputo Inc. and SDA do not undertake to update or revise forward-looking statements, whether written or verbal, that may be made from time to time by itself or on our behalf, whether as a result of new information, future events, or otherwise. All forward-looking statements contained herein are expressly qualified by this cautionary statement.
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