Saputo to sell UK dairy division to Lactalis for £988 million

Montréal, Saputo Inc. (TSX:SAP) has announced it is selling its Dairy Division in the United Kingdom to Lactalis (Lactalis) for an enterprise value of around £988 million. The deal encompasses five manufacturing sites and well-known UK brands like Cathedral City, Wensleydale, Davidstow, Clover, and Country Life. The division contributed roughly $1.2 billion in revenues during the past four quarters, accounting for approximately 7% of Saputo's overall earnings.

The closing is anticipated to take place by the close of the first quarter of 2027, dependent on standard closing provisions and regulatory clearances. Saputo's President and CEO, Carl Colizza, stated this move is a calculated effort to streamline their global presence and concentrate on areas where Saputo holds a competitive advantage.

The company's proceeds are planned to boost financial flexibility and facilitate growth initiatives. Saputo aims to use the funds for organic expansion, capital projects, and strategic acquisitions while prioritizing returns and long-term value generation. Globally, Saputo is one of the top ten dairy processors, specializing in cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients.

The company excels as a leading cheese manufacturer and fluid milk processor in Canada, a prominent dairy processor in Australia, and a key cheese producer in the United States. Before this sale, Saputo held the title of the top manufacturer of branded cheese and dairy spreads in the UK.