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  "documentTitle": "Saputo Inc. (TSX:SAP)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2022-11-29 00:00:00",
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  "notes": "The slide contrasts the stable Chilean economy with the distressed Argentine economy to frame the valuation benchmark.",
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      "text": "The recent acquisition of Fonterra's Chilean business is an instructive benchmark for what a profitable Latin American dairy business is currently valued at. Chile is a stable economy with an A+ credit rating by S&P. Argentina, on the other hand, is experiencing severe financial stress, with a CCC+ and negative outlook by S&P. The business was acquired for NZ$1.055 billion (US$648 million) or approximately 8.8x estimated EBITDA and approximately 1.0x sales.",
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      "text": "The recent acquisition of Fonterra's Chilean business is an instructive benchmark for what a profitable Latin American dairy business is currently valued at.",
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      "text": "EBITDA multiple: 8.8x",
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      "text": "Fonterra is pleased to announce the divestment of its Chilean Soprole business. The divestment comprises a number of transactions that result in aggregate consideration of 591.07 billion Chilean Pesos (approximately NZD1.055 billion). Fonterra CEO, Miles Hurrell, says that the divestment process for the Soprole business formally commenced in April 2022, following the launch of Fonterra's strategy to 2030. A key pillar of our strategy is to focus on New Zealand milk. Soprole is a very good business but does not rely on New Zealand milk or expertise. We are now at the end of the divestment process and have agreed to sell Soprole to Gloria Foods - JORB S.A. (Gloria Foods). Gloria Foods is a consumer dairy market leader in Peru, with operations in Bolivia, Puerto Rico, Argentina, Colombia and Uruguay. Fonterra and Gloria Foods have a long-standing commercial relationship in South America.",
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      "kind": "paragraph",
      "text": "Fonterra Selling Chilean Dairy Business",
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      "text": "In a research note on Friday, Forsyth Barr analysts Matt Montgomerie and Andy Bowley said the performance of Fonterra's Chile business continued to improve, with annual profit before interest and tax of $92m - more than double the $42m in 2020. The analysts valued the Chile business at $840m, which is seven times its estimated $120m profit before interest, tax, depreciation and amortisation (ebitda).",
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      "text": "Projected EBITDA: NZ$120m (US$73m)",
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      "text": "In a research note on Friday, Forsyth Barr analysts Matt Montgomerie and Andy Bowley said the performance of Fonterra's Chile business continued to improve, with annual profit before interest and tax of $92m - more than double the $42m in 2020. The analysts valued the Chile business at $840m, which is seven times its estimated $120m profit before interest, tax, depreciation and amortisation (ebitda).",
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      "text": "Source: \"Fonterrra could reap $840m from sale of Chile Business, analysts say\", Stuff.Nz, Sept 23, 2022",
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      "text": "Source: Fonterra",
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      "text": "Latin American Dairy Assets Trade At Discounts",
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