Lactalis has agreed to acquire Saputo’s UK Dairy Division for an enterprise value of approximately £988 million, in a deal that will bring a portfolio of major British dairy brands under the French dairy giant’s ownership.
Saputo said it had entered into a definitive agreement with B.S.A. SAS, part of Lactalis, with completion expected by the end of the first quarter of calendar 2027, subject to customary closing conditions including regulatory approvals.
The deal includes five UK manufacturing facilities and a number of established brands, including Cathedral City, Wensleydale, Davidstow, Clover and Country Life.
Saputo’s UK Dairy Division generated approximately $1.2 billion (£890m) in revenue over the last four quarters, accounting for around 7 per cent of the company’s consolidated revenues.
The sale forms part of Saputo’s strategy to refine its global footprint and focus investment on areas where it sees stronger competitive opportunities.
Saputo president and CEO Carl Colizza 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.”
He added that the transaction recognised the expertise of the UK team, the quality of its operations and the market positions of its brands.
“We are profoundly grateful to our colleagues in the United Kingdom for their dedication and contributions to Saputo,” Colizza said. “We look forward to seeing these strong assets and brands continue to build on their market positions under new ownership.”
For Lactalis, the acquisition will add a significant portfolio of UK dairy manufacturing assets and brands to its existing operations. In June, the company has completed the acquisition of UK sports nutrition business Protein Works, marking a significant move into the fast-growing active nutrition category.
Saputo said proceeds from the sale would strengthen its financial flexibility and give it additional capacity to accelerate growth. The company plans to consider opportunities including organic investment, capital projects and strategic acquisitions, while maintaining its focus on returns and long-term value creation.