Saputo has agreed to sell an 80% stake in its Argentina dairy business to Peru’s Gloria Foods in a deal valuing the unit at about $855 million, as the Canadian processor trims its exposure to volatile markets and boosts capital flexibility.

Saputo says it expects to receive net proceeds of approximately $543 million after tax while retaining a 20% minority stake.

The divested business generated roughly $1.2 billion in revenue over the last four quarters, accounting for about 7% of Saputo’s consolidated sales.

Assets include two manufacturing facilities and local brands La Paulina, Ricrem and Molfino. The unit will continue to produce certain products for Saputo under supply agreements following completion.

The move marks a big portfolio shift for Saputo, which has been the largest dairy processor in Argentina.

Carl Colizza, president and CEO of Saputo, said: “This divestiture enhances our financial flexibility and supports targeted reinvestment in platforms that offer the highest growth opportunities, while allowing us to maintain a portfolio of Argentina‑sourced products for our international markets”.

For Gloria Foods, the acquisition strengthens its presence in Latin America’s dairy sector and provides scale in Argentina, one of the region’s key milk-producing and export markets. The deal also includes the transfer of a commercial office in Brazil, according to industry reports.

The transaction reflects a broader recalibration among global dairy processors, many of which are reassessing geographic exposure amid currency volatility, shifting trade flows and pressure to deliver stronger returns on invested capital.

By retaining a minority interest and supply arrangements, Saputo maintains commercial ties to Argentina while reducing direct operating exposure.

The transaction, subject to regulatory approvals, is scheduled to close in the first quarter of fiscal 2027.