Canada-based dairy major Saputo has agreed to sell an 80% controlling stake in its Argentina dairy business to Grupo Gloria, marking a significant portfolio realignment in Latin America.
Under the deal, Saputo will retain a 20% minority interest in Molfino Hermanos, which operates two production facilities and owns established local dairy brands including La Paulina, Ricrem and Molfino. Control of the business will transfer to Grupo Gloria, strengthening the Peruvian group’s footprint in the Argentine dairy market.
Saputo stated that it expects to receive net proceeds of approximately C$543 million (around US$400 million) after tax. The transaction aligns with Saputo’s broader strategy of optimising its global portfolio and reallocating capital towards priority markets with stronger long-term returns.
From an industry perspective, the divestment reflects the growing operational and macroeconomic challenges in Argentina’s dairy sector, including currency volatility, cost inflation and regulatory uncertainty. For Saputo, reducing exposure while maintaining a minority stake allows continued participation in the market’s upside without full operational risk.
For Grupo Gloria, the acquisition represents a strategic expansion into one of South America’s largest milk-producing countries. The group has pursued aggressive regional growth through acquisitions, and the addition of Molfino Hermanos enhances its processing capacity, brand portfolio and regional scale.
Overall, the transaction underscores a broader trend among multinational dairy companies towards selective geographic exposure, capital discipline and partnership-led market participation in complex operating environments.