Marval O´Farrell assists Saputo in acquisition of third largest dairy processor in Argentina

Saputo Inc. completed, on November 28, 2003, the transaction announced on October 2, 2003 regarding the acquisition of 100% of Molfino Hermanos S.A. (Molfino), the third largest dairy processor in Argentina. The seller was Molinos Río de la Plata S.A., major Argentine food company controlled by the Perez Companc family. The purchase price is US$ 50.8 million on a debt-free basis and is subject to certain post-closing adjustments.

Molfino operates two plants and employs 850 people. The company has sales of approximately US$ 90 million. National sales represent approximately 60% of total sales, with the remaining 40% done through exports. The company produces a wide variety of soft, semi-soft, hard and grated cheeses, as well as butter, cream, milk powder, UHT milk and dulce de leche (caramelized milk). Its main brand names are La Paulina, Molfino, Ricrem and Taluhet. Molfino counts on a third-party distribution network of more than 200 distributors. Exports sales, mostly comprised of milk powder and cheeses, are conducted in more than 30 countries.

Saputo Inc. is the largest dairy processor in Canada and one of the leading cheese manufacturers in North America. Saputo markets its products under brand names as Saputo, Stella, Frigo, Dragone, Armstrong, Caron, Cayer, Treasure Cave, Dairyland, Baxter, Nutrilait, and Vachon.

Saputo Inc., was advised through Argentine counsel Marval, O?Farrell & Mairal and Canadian counsel Stikeman Elliott LLP Barristers & Solicitors.

Marval, O?Farrell & Mairal´s team included partners Alfredo M. O?Farrell and Pablo García Morillo and associates Miguel del Pino and Patricia Ruhman Seggiaro.

Stikeman Elliott LLP Barristers & Solicitors acted through partner Steeve Robitaille and associate Benoît C. Dubord.

Saputo was also advised by Director of Legal Affairs Isabelle Viger and its in-house counsel Roberto Buffone.

Molinos Rio de la Plata S.A. was assisted by Bruchou, Fernández Madero, Lombardi & Mitrani, through partner Siro Astolfi, and associate Mariano Luchetti. It was also advised by Molinos head in-house counsel Javier Rodríguez Galli.