The producer of well-known brands such as Cathedral City and Clover has finalized an agreement to divest its UK dairy division for approximately £988 million.
As part of this transaction, five manufacturing plants along with notable brands like Cathedral City, Wensleydale, Davidstow, Clover, and Country Life will transition to Lactalis’s ownership.
Based in Montréal, the company’s UK dairy operations reportedly generated around US$1.2 billion in revenue over the last year, accounting for roughly 7% of Saputo’s total earnings.
This agreement is anticipated to close by the first quarter of 2027, pending the usual regulatory approvals and closing conditions.
Saputo has expressed that the funds received from this transaction will strengthen its financial position and enhance growth opportunities.
In a statement released to the media, the company mentioned that it will “evaluate opportunities to deploy capital for organic investments, capital projects, and strategic acquisitions while maintaining focus on returns and long-term value creation.”
Carl Colizza, the president and CEO of Saputo, stated: “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.”
He added: “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.”
Colizza further remarked: “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.”
As one of the world’s top ten dairy processors, Saputo is engaged in producing cheese, fluid milk, long shelf-life milk and cream products, cultured products, and dairy ingredients.
Before this divestment, Saputo was the leading producer of branded cheeses and dairy spreads in the UK.
The decision to exit the British dairy market follows a challenging period for Saputo, characterised by high global inflation, increasing operational expenses, and declining consumer spending.
Last year, the company scaled back its UK dairy footprint by pulling out of the infant formula sector.
