Canadian dairy group Saputo is selling its UK dairy division to French company Lactalis, a deal covering five production facilities and brands including Cathedral City and Davidstow.

Canadian dairy group Saputo has entered into a binding agreement to sell its UK dairy division to French company B.S.A. SAS, owned by Lactalis. The deal values the business at an enterprise value of approximately £988 million, according to a press release from Saputo.

The agreement covers five production facilities in the UK, along with a range of well-known brands, including Cathedral City, Wensleydale, Davidstow, Clover and Country Life.

According to Saputo, the UK dairy division generated revenues of approximately C$1.2 billion over the last four quarters, representing approximately 7 per cent of the group’s consolidated revenues.

The transaction is expected to close by the end of the first quarter of 2027, subject to regulatory approval and other customary closing conditions.

Aims to strengthen financial flexibility
“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 of Saputo, according to the press release.

He added that the value of the deal recognised the expertise of the UK team, the quality of the operations and the market position of the brands involved, and that the transaction reinforced the group’s strategic focus and financial flexibility as it continued to pursue disciplined capital allocation.

Saputo also stated that the proceeds from the sale were expected to give the company greater financial flexibility and capacity to support growth, including through organic investments and strategic acquisitions.

Ahead of the planned sale, Saputo is the leading manufacturer of branded cheese and dairy spreads in the UK.

By Maja Løvstrup
Photo: Colourbox