Saputo Inc.

Saputo Inc.

March 18, 2005 05:00 ET

Saputo Inc. Enters into an Agreement to Acquire the Activities of Fromage Cote S.A. and Distributions Kingsey Inc.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SAPUTO INC.

TSX SYMBOL: SAP

MARCH 18, 2005 - 05:00 ET

Saputo Inc. Enters into an Agreement to Acquire the
Activities of Fromage Cote S.A. and Distributions
Kingsey Inc.

MONTREAL, QUEBEC--(CCNMatthews - March 18, 2005) - Saputo Inc. (TSX:SAP)
announces today that it has entered into an agreement to acquire from
Fromage Cote S.A. and Distributions Kingsey Inc. the manufacturing,
marketing and distribution activities for their pressed cheddar and
cheddar cheese curd, Swiss-type cheese and other specialty cheeses sold
under the brand names Kingsey, Princesse, Sir Laurier d'Arthabaska and
Du Village de Warwick.

The purchase price is CDN $54 million on a debt-free basis, payable in
cash. The closing of the transaction is subject to the usual conditions,
including approval by the Competition Bureau, and is anticipated for
early April 2005.

Fromage Cote S.A. and Distributions Kingsey Inc. employ approximately
400 people in Quebec at their plants in Warwick and Plessisville, at
their cheese aging centre in Victoriaville, as well as at their cutting
and distribution centre in Boucherville. The organization's annual
revenues are approximately CDN $110 million. These assets will
complement Saputo's current cheese-making activities in Canada.

About Saputo

Since 1954, Saputo has maintained its family flavour and the vitality of
a team whose passion is equalled only by its know-how... and its taste
for good food! Saputo employs 7,500 individuals in its 42 plants and its
distribution centres. Well established in the dairy and grocery products
sectors, its products are offered under the brand names of Saputo,
Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave,
Dairyland, Baxter, Nutrilait, La Paulina, Ricrem and Vachon. Saputo is
the largest dairy processor in Canada, one of the largest cheese
producers in North America and the third largest dairy processor in
Argentina. Saputo Inc. is a public company whose shares are listed on
the Toronto Stock Exchange under the symbol SAP. Visit our website at
www.saputo.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Saputo Inc.
    Claude Pinard
    Vice President, Communications
    (514) 328-3381