Business & Markets
Lactalis agrees to buy Saputo's U.K. dairy operations for £988 million
The transaction would transfer a major British cheese, butter and spreads portfolio to the world's largest dairy company, subject to closing conditions.
Executive summary
- The price: Lactalis agreed to pay about £988 million, roughly $1.34 billion or C$1.86 billion, for Saputo's U.K. operations.[1][2][3]
- The portfolio: The business includes British brands such as Cathedral City, Clover, Country Life, Davidstow and Frylight.[1][2]
- The scale: Saputo said the division generated about £800 million in revenue over the four quarters preceding the announcement.[1][3]
- The status: The deal is signed but not closed and remains subject to regulatory approval and other customary conditions.[1][2]
French dairy group Lactalis has agreed to acquire Saputo's United Kingdom dairy operations for approximately £988 million, equivalent to about $1.34 billion or C$1.86 billion at the values cited in the companies' announcements. The agreement would move one of Britain's largest branded dairy portfolios from the Canadian producer to the privately held French group.[1][2][3]
The business makes and sells cheese, butter, spreads, oils and dairy ingredients under brands including Cathedral City, Clover, Country Life, Davidstow and Frylight. Those names give Lactalis a larger position in British grocery aisles as well as additional manufacturing and milk-supply relationships.[1][2]
Saputo said the U.K. division generated approximately £800 million in revenue over the four quarters before the announcement. The sale continues Saputo's reshaping of its global portfolio and concentrates capital away from a business that represented a minority of group revenue.[1][3]
Lactalis described the acquisition as a way to reinforce its U.K. presence across branded cheese and dairy spreads. The transaction also follows other expansion by the group in higher-value dairy and nutrition categories, giving it a broader route from milk procurement through consumer brands.[2]
The companies have announced a definitive agreement, not a completed transfer. Regulatory review and other customary closing conditions remain, so the brands and operations continue under Saputo until the transaction formally closes.[1][2][3]