Saputo, the Canada-based dairy processor, has entered into a definitive agreement to sell its Dairy Division (UK) to Lactalis for an enterprise value of approximately £988 million ($1.28 billion).
The transaction includes five manufacturing facilities and local brands, including Cathedral City, Wensleydale, Davidstow, Clover and Country Life. Over the last four quarters, the UK unit generated approximately $1.2 billion of revenues, representing around 7% of consolidated revenues. Closing of the transaction is expected by the end of the first quarter of calendar 2027, subject to customary closing conditions and regulatory approvals.
Saputo president and CEO Carl Colizza commented: “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. 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”.
According to Saputo, proceeds from the deal will provide additional capacity to accelerate growth and evaluate opportunities such as organic investments, capital projects and strategic acquisitions.
Source: Saputo (via Globe NewsWire)
