Saputo Sells Majority Stake in Argentina to Grupo Gloria

Canada-based dairy company Saputo has announced the sale of an 80% controlling stake in its Argentina dairy division to Grupo Gloria, a major player in the Latin American dairy sector. This strategic move marks a significant shift in Saputo's portfolio, as the company seeks to optimize its global operations and focus on markets with stronger long-term returns.

Saputo will maintain a 20% minority interest in Molfino Hermanos, the Argentine dairy unit, which operates two production facilities and owns well-known local brands such as La Paulina, Ricrem, and Molfino. The sale is expected to generate net proceeds of approximately C$543 million (around US$400 million) after tax for Saputo.

Grupo Gloria, based in Peru, will take over control of the business, thereby strengthening its position in one of South America's largest milk-producing countries. This acquisition aligns with Grupo Gloria's strategy of regional expansion through acquisitions, enhancing its processing capacity, brand portfolio, and regional scale.

The transaction highlights the growing operational and macroeconomic challenges in Argentina's dairy sector, such as currency volatility, cost inflation, and regulatory uncertainty. By divesting its majority stake, Saputo aims to reduce exposure to these risks while still participating in the market's potential upside through its retained minority interest.

This deal reflects a broader trend among multinational dairy companies towards selective geographic exposure and capital discipline, focusing on partnership-led market participation in complex environments.