Saputo, Inc. (TSX:SAP) signed an agreement to acquire the fluid milk business of Scotsburn Co-Operative Services Ltd. for CAD 61 million in cash on January 17, 2014. The purchase consideration on a debt-free basis excludes about CAD 8 million of working capital items and will be financed through available credit lines. The Scotsburn Fluid Milk Business generates annual sales of approximately CAD 160 million and about CAD 8 million of earnings before interest, taxes, depreciation and amortization (EBITDA).

The transaction is subject to the approval of Scotsburn Co-Operative members and approval by the Canadian Competition Bureau. On March 12, 2014, the Competition Bureau issued a No Action Letter to Saputo and Scotsburn indicating that the Commissioner of Competition does not, at this time, intend to make an application under section 92 of the Competition Act in respect of the proposed transaction. The transaction is expected to close around March 2014.

Stewart McKelvey LLP and Steeve Robitaille, Dana Borshy, Adam Cieply, Daniel Khazzam, Lawson Hunter, Michael Kilby, Eveline Poirier, Michel Legendre, Bertrand Menard, Myriam Fortin, Jonathan Auerbach and Franco Gadoury of Stikeman Elliott LLP acted as legal advisors for Saputo Inc. George L. White, Jennifer Hamilton Upham, Martina Munden and Ron Creighton of Patterson Law acted as legal advisors to Scotsburn.