Saputo Inc. is paying $134.4 million cash to buy the everyday cheese business of Lion-Dairy & Drinks Pty Ltd. based in Victoria, Australia.
The deal includes $104.1 million for inventory net of a minimal amount of assumed liabilities.
Saputo did the deal via an Australian company it bought last year - Warrnambool Cheese and Butter Factory Co. Holdings Ltd.
The deal, which is to close in May, providing it clears shareholder and regulatory approvals includes cutting and wrapping, distribution, sales and marketing and intellectual property associated with the Coon, Cracker Barrel, Mil Lel and Fred Walker brands.
The business has sales of $156 million a year and employs about 170 people.