Lactalis to acquire Saputo’s dairy division in UK for US$1.33B

UK – Lactalis has entered into a definitive agreement with Saputo to acquire its Dairy Division (UK), valuing the business at an enterprise value of approximately US$1.33 billion (£988 million).

The transaction includes five manufacturing facilities as well as local brands, including Cathedral City, Wensleydale, Davidstow, Clover, and Country Life. Over the last four quarters, the Dairy Division (UK) generated approximately $1.2 billion of revenues, which represented approximately 7% of consolidated revenues.

Deeply rooted in Britain’s dairy heritage and built on a longstanding tradition of artisanal expertise, these brands have held a special place on British consumers’ tables for decades. Over the past 60 years, Cathedral City has established itself as the UK’s favourite cheddar brand.

Distributed through specialist cheese retailers, supermarkets and foodservice outlets, the subsidiary’s products are primarily sold in the UK, which accounts for 94% of sales, with the remaining 6% exported to Europe, Asia-Pacific and North America.

“Today’s announcement reflects a disciplined step to refine our global footprint and sharpen our focus on platforms where Saputo competes from a position of strength,” said Carl Colizza, President and CEO.

“The value to be realized recognizes the expertise of the UK team, the quality of the operations, and the market position of these leading brands. This transaction reinforces our strategic focus and enhances our financial flexibility as we continue to create long-term shareholder value through disciplined capital allocation.”

Consistent with its disciplined capital allocation framework, the Company will actively evaluate opportunities to deploy capital in support of its strategic priorities, including organic investments and capital projects, and strategic acquisitions, while maintaining a focus on attractive returns and long-term value creation.

“This acquisition marks a key milestone in Lactalis’ development in the United Kingdom. By welcoming famous brands and recognised expertise into the group, we are strengthening our position in the UK market and reaffirming our commitment to providing consumers with high-quality dairy products,” said Emmanuel Besnier, Chairman of Lactalis.

The company employs approximately 1,300 people and operates five production sites located in Hawes (Yorkshire), Davidstow (Cornwall), Nuneaton (Warwickshire), Kirkby (Merseyside) and the Isle of Bute (Scotland). In its latest financial year, the business generated revenues of €800 million.

The proceeds from the transaction are expected to further enhance the Company’s financial flexibility and provide additional capacity to accelerate growth.

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