Saputo to Increase Its Presence in Specialty Cheese and Yogurt by Acquiring the Activities of Shepherd Gourmet in Canada

MONTRÉAL, QUÉBEC--(Marketwired - May 23, 2018) - Saputo Inc. ("Saputo" or the "Company") (TSX:SAP) announces today that it has entered into an agreement to acquire the activities of Shepherd Gourmet Dairy (Ontario) Inc. ("Shepherd Gourmet"). Its activities are conducted at one manufacturing facility located in St. Marys, Ontario (Canada). The business employs approximately 90 people.

The purchase price of CDN$100 million, on a debt-free-basis, will be paid in cash from cash on hand and available credit facilities.

Shepherd Gourmet manufactures, markets and distributes a variety of specialty cheeses, yogurt, as well as Skyr Icelandic-style yogurt in Canada. For the twelve-month period ended on April 30, 2018, Shepherd Gourmet generated revenues of approximately CDN$57 million.

The transaction will enable the Company's Dairy Division (Canada) to increase its presence in specialty cheese and expand its yogurt offering in Canada.

The transaction is subject to customary conditions and is expected to close in June 2018.

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.