French Lactalis to Acquire Saputo's UK Dairy Business for Nearly £1 Billion

en.Wedoany.com Reported - On August 14, French dairy group Lactalis signed a definitive agreement with Canada's Saputo to acquire Saputo's UK dairy division, with an enterprise value of approximately £988 million. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to be completed by the end of the first quarter of 2027.

The transaction covers Saputo's five dairy production facilities in the UK, as well as brands such as Cathedral City, Wensleydale, Davidstow, Clover, and Country Life. Lactalis's listed asset portfolio also includes Utterly Butterly spread and Yorkshire Wensleydale cheese products, which hold UK Protected Geographical Indication status.

Saputo's UK dairy division employs approximately 1,300 people and primarily produces cheddar cheese, butter, and dairy spreads. Approximately 94% of the division's sales revenue comes from the UK market, with the remainder exported to Europe, the Asia-Pacific region, and North America. Over the past four quarters, the division generated approximately CA$1.2 billion in revenue, accounting for about 7% of Saputo's consolidated revenue; Lactalis's latest fiscal year revenue stands at €800 million.

Upon completion of the transaction, Saputo's UK dairy division's production facilities, employees, and brands will be integrated into Lactalis's UK operations. Lactalis's existing UK business involves cheese, butter, chilled dairy products, and nutritional products; the proposed acquisition will expand its product portfolio in the UK cheddar cheese, butter, and spread markets.

Saputo entered the UK dairy market in April 2019 following its acquisition of UK-based Dairy Crest Group. The total consideration at the time was approximately £1.2 billion, including a £975 million share purchase price and approximately £256 million in assumed debt.