Saputo Inc. Announces a Plant Closure in the United States

MONTRÉAL, QUÉBEC--(Marketwired - Nov. 9, 2017) - Saputo Inc. (TSX:SAP) ("Saputo" or the "Company") announces today measures aimed at improving its operational efficiency. Saputo will close its cheese manufacturing facility in Fond du Lac, Wisconsin (USA). The closure is scheduled in May 2018. The current production will be integrated into the Company's newly constructed blue cheese facility in Almena, Wisconsin (USA). In all, approximately 126 employees will be impacted. These employees will be provided with severance and outplacement support; and some will be offered the possibility of transferring to other Saputo locations.

Over recent years, Saputo has maintained efforts to pursue additional efficiencies and decrease costs while strengthening its market presence. This decision is part of the Company's continual analysis of its overall activities.

Costs connected with the closure will be approximately CDN$22 million after taxes, which include an after tax fixed assets write-down of approximately CDN$7 million. These costs will be recorded in the third quarter of fiscal 2018. Annual savings after taxes should commence in fiscal 2019 and gradually increase over the next 2 fiscal years, reaching approximately CDN$7 million in fiscal 2020.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements are based, among other things, on Saputo's assumptions, expectations, estimates, objectives, plans and intentions as of the date hereof regarding projected revenues and expenses, the economic, industry, competitive and regulatory environments in which the Company operates or which could affect its activities, its ability to attract and retain customers and consumers, as well as the availability and cost of milk and other raw materials and energy supplies, its operating costs and the pricing of its finished products on the various markets in which it carries on business.

These forward-looking statements include, among others, statements with respect to the Company's short and medium-term objectives, outlook, business projects and strategies to achieve those objectives, as well as statements with respect to the Company's beliefs, plans, objectives and expectations. The words "may", "should", "will", "would", "believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee", "objective", "continue", "propose" or "target", or the negative of these terms or variations of them, the use of conditional or future tense or words and expressions of similar nature, are intended to identify forward-looking statements.