Canadian dairy giant Saputo is selling a majority stake in its Argentine operations, which include the La Paulina brand, to Peru's Grupo Gloria, reducing its exposure in the country.
Saputo, one of the world's top ten dairy companies and the leading dairy processor in Argentina, has announced a significant divestment from its operations in the country. The Canadian company will sell 80% of its stake in its dairy division, which operates under the Molfino brand and includes well-known products such as La Paulina cheese, to Peru's Grupo Gloria. Valued at approximately $630 million, the transaction will see Grupo Gloria pay $500 million for the majority share, with the deal expected to close in the first quarter of 2027, pending regulatory approvals.
The deal encompasses not only the brand La Paulina but also two manufacturing plants and other local brands such as Ricrem and Molfino. Despite the divestiture, Saputo will retain a 20% stake and continue producing certain products for its brand, ensuring ongoing collaboration in the short to medium term. This strategic move reflects Saputo's efforts to streamline its operations and reduce financial exposure in regions where it has faced economic challenges.
Saputo's entry into Argentina dates back to 2003, when it acquired Molfino Hermanos, which was then the third-largest milk processor in the country. This sale to Grupo Gloria marks a significant shift in the Argentine dairy landscape, highlighting the ongoing influence of consolidation trends in the global dairy industry and Peru's growing role within it, given Grupo Gloria's expansive operations in the region.
