Saputo remains optimistic

Saputo Inc. believes the COVID-19 pandemic may present “great opportunities” for mergers and acquisitions, though travel restrictions present some difficulty in finalizing any possible deals, the chief executive said.

Typically, the Montreal-based dairy processor has three to four files on the table for possible acquisitions at any given time, said Lino Saputo during a conference call with analysts after the company released its fourth-quarter financial results.

“You can add more files to the table because our phone has been ringing,” he said.

The company is prepared to move forward on an acquisition that’s at the right value and fits its strategic development and orientation, he said.

“The only complication, I would say, in executing a file would be the duediligence process because we are hands-on people.”

The company can — and in many cases is — performing virtual due diligence, but what it calls phase three of visiting manufacturing facilities presents challenges.

“That right now is going to be a bit more challenging,” said Saputo, noting travel restrictions may ease up at the end of the month.

“So the normal course of duediligence process can continue,” he said. “So nothing is stopping us right now from continuing to move on in these files.”

As far as product categories, he said, Saputo is interested in cheese production, dairy powders and byproducts, but not necessarily yogurt and ice-cream for retail. Saputo is also interested in plant-based opportunities, he said.