The purchase price of A$280.0 million (approximately €176 million), on a cash-free and debt-free basis, will be paid in cash at closing from cash on hand and available credit facilities.

The business produces, markets and distributes a variety of specialty cheeses under a wide portfolio of Australian brands, including South Cape, Tasmanian Heritage, Mersey Valley and King Island Dairy. For the twelve-month period ended on December 31, 2018, the business generated revenues of approximately A$192 million (€121 million).

The specialty cheese business will, the company says, enable Saputo’s Dairy Division (Australia) to further diversify its product offering, adding to and complementing its current activities.

The transaction is subject to foreign investment approval and clearance by the Australian Competition and Consumer Commission, and is expected to close in the second half of calendar year 2019.