Saputo has agreed to sell its United Kingdom dairy operations to Lactalis at an enterprise value of approximately £988 million, sharpening the global dairy company’s focus on markets and platforms where it believes it has stronger competitive positioning.
The transaction is expected to close by the end of the first quarter of calendar 2027, subject to customary conditions and applicable regulatory approvals.
The sale includes five manufacturing facilities and several established UK dairy brands, including Cathedral City, Wensleydale, Davidstow, Clover and Country Life.
Saputo’s UK Dairy Division generated approximately $1.2 billion of revenue during the most recent four quarters, representing about 7% of the company’s consolidated revenue.
The transaction represents a significant portfolio move for Saputo, which prior to the contemplated sale is the leading manufacturer of branded cheese and dairy spreads in the United Kingdom.
Saputo said the divestiture is intended to refine its global footprint and direct capital toward businesses where the company believes it can generate stronger long-term returns.
Proceeds from the sale are expected to increase Saputo’s financial flexibility.
The company plans to evaluate deploying the additional capital across organic investments, capital projects and strategic acquisitions while maintaining its focus on long-term value creation.
Lactalis will acquire a business that includes well-established brands and manufacturing operations representing a meaningful share of Saputo’s global sales.
Saputo remains one of the world’s 10 largest dairy processors, with major operations in Canada, the United States and Australia.
Its product portfolio includes cheese, milk, cream, cultured dairy products, dairy ingredients and dairy alternatives.
KEY QUOTES:
“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.”
“We are profoundly grateful to our colleagues in the United Kingdom for their dedication and contributions to Saputo. We look forward to seeing these strong assets and brands continue to build on their market positions under new ownership.”
Carl Colizza, President and CEO of Saputo
