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Saputo Inc. has agreed to sell its Dairy Division (UK) to French dairy enterprise B.S.A. SAS (Lactalis) for an enterprise value of approximately £988 million ($1.34 billion).
The transaction encompasses Saputo's entire British manufacturing footprint, proprietary brand portfolio, and regional workforce. The deal is expected to close by the end of the first quarter of calendar 2027, subject to customary closing conditions and required regulatory approvals.
Transaction Overview and Brand Portfolio
The sale includes five UK manufacturing facilities alongside a portfolio of established British cheese, butter, and spread brands.
Key assets transferred to Lactalis under the agreement include:
🧀 Cheese Portfolio: Market-leading brands Cathedral City and Davidstow cheddar, alongside the Wensleydale Creamery portfolio.
🧈 Butter and Spreads: Key domestic household brands including Country Life butter, Clover, and Utterly Butterly.
🏭 Manufacturing Infrastructure: Production facilities located in Hawes (North Yorkshire), Davidstow (Cornwall), Nuneaton (Warwickshire), Kirkby (Merseyside), and the Isle of Bute (Scotland).
👥 Workforce and Operations: Approximately 1,300 employees across UK processing plants, regional sites, and commercial functions.
The transaction strengthens Lactalis' position across the UK dairy market, establishing the enterprise as a leader in domestic cheddar, butter, and margarine categories.
Rationale and Financial
Over the last four quarters, Saputo's UK dairy division generated approximately £800 million ($1.2 billion) in revenues, representing roughly 7 per cent of Saputo's consolidated global revenues. The unit generates approximately 94 per cent of its total sales internally within the UK market.
Carl Colizza, President and Chief Executive Officer of Saputo Inc., stated that the sale represents a disciplined step to refine the company's global footprint and sharpen focus on platforms where Saputo competes from a position of strength.
Saputo indicated that net proceeds from the transaction will enhance financial flexibility, lower debt leverage, and provide capital to accelerate organic growth projects and strategic acquisitions across core operating territories.
UK Manufacturing Footprint
The acquisition marks the fourth major transaction executed by Lactalis during 2026, building upon its global processing capabilities and expanding its European retail footprint.
Integrating Saputo's five British processing hubs provides Lactalis with direct domestic milk pool access and localised manufacturing density across England, Scotland, and Wales.
Both parties confirmed that operations across the five UK production facilities will continue as normal during the transition period leading up to final regulatory clearance in early 2027.
