Saputo sells UK dairy division to Lactalis for £988M, exiting a market it entered in 2015. The deal includes Cathedral City and other brands, representing 7% of revenue.
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Saputo Inc. agreed to sell its United Kingdom dairy division to Lactalis, the French dairy giant, for an enterprise value of roughly £988 million. The deal covers five manufacturing sites and a portfolio of British grocery brands including Cathedral City, Wensleydale, Davidstow, Clover, and Country Life.
The UK business generated about C$1.2 billion in revenue over the past four quarters, or roughly 7% of Saputo's consolidated sales. The transaction values the unit at approximately 1.4 times that revenue figure, based on the £988 million enterprise value.
“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,” said Carl Colizza, Saputo’s president and chief executive officer. “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.”
Colizza added that the deal reinforces Saputo's strategic focus and improves financial flexibility. Proceeds from the sale are expected to give the company more capacity to invest in organic projects, capital spending, and acquisitions, while maintaining a focus on returns.
Saputo is one of the top ten dairy processors worldwide, with leading positions in Canada, Australia, and the United States. The UK sale effectively ends a significant European presence for the Montreal-based company. Saputo entered the UK market through its 2015 acquisition of Dairy Crest Group for about C$1.2 billion, a deal that brought the Cathedral City cheddar brand and other assets.
The sale to Lactalis, which is privately held and controlled by the Besnier family, is expected to close by the end of the first quarter of calendar 2027. It is subject to customary conditions, including regulatory approvals. Lactalis already owns brands such as Président, Galbani, and Parmalat, and the acquisition would strengthen its British cheese and dairy spreads operations.
Saputo shares trade on the Toronto Stock Exchange under the symbol SAP. The company said it remains committed to a disciplined capital allocation framework and will evaluate opportunities to deploy the proceeds in support of its strategic priorities.
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