Cathedral City

Canadian dairy company Saputo has agreed to buy Dairy Crest Group for £975 million.

Montreal-based Saputo will pay 620 pence a share in cash for the maker of Cathedral City cheese and Clover dairy spread.

Dairy Crest shares surged nearly 13 percent Friday, on track for its best day in more than four years.

“The board is unanimously recommending this all-cash offer by Saputo to buy Dairy Crest at an attractive premium, which represents compelling value for Dairy Crest Shareholders,” said Stephen Alexander, Chairman of Dairy Crest.

“The Acquisition should enable Dairy Crest to benefit from Saputo’s global expertise and strong financial position to fulfil and accelerate its growth ambitions. The businesses have strong shared values and the board is confident that Saputo’s plans to invest in and grow the Dairy Crest business mean the proposed transaction is positive for all its stakeholders.”

Dairy Crest has divested its dairy operations in 2014, selling the business to Müller for £80 million.