The Canadian dairy firm billed as the leading maker of branded cheese and dairy spreads in the United Kingdom is set to sell its U.K. business for about C$1.85 billion.
Montreal-based Saputo said Friday it has a “definitive agreement” in place to sell its U.K. dairy division to France’s Groupe Lactalis, placing its enterprise value at about £988 million
Typically ranked among the top 10 dairy processors in the world — a list on which Lactalis generally places first — Saputo said it expects to use proceeds from the deal to “further enhance the company’s financial flexibility and provide additional capacity to accelerate growth.”
The latest in a string of divestments
Since going public in 1997, Saputo expanded aggressively through acquisitions in Canada and internationally.
Earlier this year, though, it sold off an 80 per cent stake in its Argentina business and sold its share in a joint dairy venture in Australia to Danone. In 2024 Saputo also sold two Australian dairy plants and closed two plants in Wisconsin.
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