Saputo, a Canadian multinational known for its dairy products, has entered into an agreement to sell 80% of its dairy operations in Argentina to Gloria Foods, a prominent Peruvian food holding company. This deal, valued at around $630 million, is expected to provide Saputo with net proceeds estimated at $400 million after taxes, subject to usual adjustments. The sale represents a significant transition in the Argentinian dairy market, where Saputo has been a major player, processing over 3.5 million liters of milk daily in the 2024/2025 period.

The transaction is not purely financial; it includes the transfer of critical industrial assets and established brands that are well-recognized in the Argentinian retail landscape. Among the valuable assets being transferred are two production plants and ownership of several historical labels, including La Paulina, Ricrem, and Molfino. This strategic divestiture indicates Saputo's intention to streamline its operations while allowing Gloria Foods to expand its presence in the Argentine dairy market.

As Gloria Foods acquires these assets, the implications for both companies could be significant. For Saputo, this move could lead to increased focus on its core markets while bolstering its finances, and for Gloria Foods, it marks a critical opportunity to solidify its foothold in Argentina, potentially increasing competition in the dairy sector. The sale reflects current trends in the food industry, emphasizing the consolidation of resources and markets amid changing consumer preferences and economic pressures.