Saputo (SAP) was up 4% today after announcing the sale of 80% of its Argentina business for $540M. At ~7% of revenue, the divestiture isn’t overly material…

… but it should reduce margin volatility and free up some capital for reinvestment in the company’s core geographic footprint.

With leverage being a non-issue, buybacks are likely another use of proceeds…

… which could support continued multiple expansion towards Saputo’s long-term average valuation.