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Saputo to sell U.K. operations for $1.86 billion

Saputo headquarters in Montreal, Quebec, Canada, on Aug. 3, 2022.

Saputo Inc. has agreed to sell its U.K dairy division to French dairy giant Groupe Lactalis S.A. for approximately £988 million.

The Montreal-based dairy company announced the deal on Friday, which is expected to close by the end of the first quarter of 2027 after regulatory approvals.

The transaction includes five manufacturing facilities, as well as local brands, including Cathedral City, Wensleydale, Davidstow, Clover and Country Life.

“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,” said chief executive Carl Colizza in a press release. “We look forward to seeing these strong assets and brands continue to build on their market positions under new ownership.”

The company said that its U.K. dairy division has generated approximately $1.2 billion of revenues over the last four quarters. This represents seven per cent of consolidated revenues of Saputo, one of the top ten dairy processors in the world.

Prior to the contemplated sale, Saputo is the leading manufacturer of branded cheese and dairy spreads in the United Kingdom.

A month ago, Lactalis also reached an agreement to acquire Canadian cooperative Agropur’s fine cheese division, which includes flagship Quebec-made brands Monsieur Gustav, OKA and L’Extra, which generates revenue of approximately $180 million.