The Cathedral City and Clover producer has entered into a definitive agreement to sell its UK dairy division for approximately £988 million.
Saputo’s divestment will see five manufacturing facilities and popular brands including Cathedral City, Wensleydale, Davidstow, Clover and Country Life transferred to the Lactalis portfolio.
According to its own estimates, the Montréal-based firm’s UK dairy arm generated approximately US$1.2 billion in revenue over the last four quarters, representing about 7% of its consolidated revenue.
The deal is expected to be finalised by the first quarter of 2027, subject to customary closing conditions and regulatory approvals.
Saputo said the proceeds from the sale will help enhance its financial flexibility and growth capacity.
In a statemen given to the press, it added that it would “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, president and chief executive of Saputo, said: “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.”
He added: “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.”
Saputo is among the top 10 dairy processors globally, producing cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients.
Prior to the sale, the company was the leading manufacturer of branded cheese and dairy spreads in the UK.
Saputo’s decision to withdraw from the British dairy market comes after a tough period for the firm, marked by high global inflation, rising operational costs and reduced consumer spending.
Last year, it downsized its UK dairy presence when it exited the local infant formula market altogether.
