Lactalis has entered a “definitive” agreement to acquire the UK business of Canadian peer Saputo in the French dairy giant’s fourth deal in two months.
While the privately-owned company did not reveal the purchase price in a statement today (14 August), Saputo tagged the transaction at around £988m ($1.33bn)
The deal is expected to close by the end of the first quarter next year, subject to regulatory approval, Toronto-listed Saputo added. Lactalis said in its own announcement that Saputo UK, which generated revenue in its latest financial year of £800m, comes with five production facilities, along with a host of cheese brands such as Cathedral City and Davidstow. The sites are located in Hawes (Yorkshire), Davidstow (Cornwall), Nuneaton (Warwickshire), Kirkby (Merseyside) and the Isle of Bute (Scotland), employing around 1,300 people, Lactalis said.
Also part of the deal are the brands Wensleydale Creamery cheeses, including the geographic origin protected Yorkshire Wensleydale, along with Country Life butter and the Clover and Utterly Butterly spreads. Lactalis chairman Emmanuel Besnier said: “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.” In June, Lactalis swooped for another UK dairy business Protein Works in what the French group said “marks a new step” in its strategy.