Land O’Lakes will sell CPI assets to Saputo

Land O'Lakes Inc has agreed to sell the assets of its Cheese & Protein International (CPI) operations, based in Tulare CA, to Saputo Cheese USA Inc. The sale includes substantially all of CPI's cheese manufacturing operations and cut-and-wrap operations, formally known as Golden Valley Dairy Products.

The transaction, with a sale price of about $216 million, includes a long-term milk supply agreement, under which Land O'Lakes will be the full milk supplier to the CPI facility. This transaction is expected to close in April 2007, subject to regulatory review. The manufacturing and cut-and-wrap facilities employ around 530 full- and part-time workers.

Land O'Lakes will continue to operate cheese manufacturing facilities in Tulare and Orland CA, Melrose MN, Denmark and Kiel WI, and a cheese processing facility in Spencer WI.

A producer-owned cooperative based in Arden Hills MN, Land O'Lakes is a leading food and agricultural company. Saputo Cheese USA Inc is a wholly owned subsidiary of Saputo Inc, headquartered in Montreal, Canada.