February 26, 2019
Saputo to buy over UK's Dairy Crest for around US$1.3 billion
Saputo Inc., one of the top ten dairy processors in the world, will buy over UK dairy group Dairy Group plc for about GBP975 million (US$1.3 billion), Saputo announced on February 22.
With a workforce of around 1,100 people operating in seven locations in the UK, Dairy Crest makes and markets dairy products under leading British brands like Cathedral City and Clover, as well as producing value-added dairy ingredients.
The acquisition of Dairy Crest represents an important venture into Europe for Saputo as the company currently does not have operations in the region. It believes that its sturdy financial position will help boost Dairy Crest's growth and thus preserve its heritage and brands.
"The transaction would enable Saputo to expand its international presence and enter the UK market by acquiring and investing in a well-established and successful industry player with a solid asset base and an experienced management team. Dairy Crest is an attractive platform which fits with Saputo's growth strategy," Saputo's press statement stated.
The deal is expected to conclude in the second quarter of 2019.
According to Saputo, Dairy Crest's revenues was around GBP456.8 million (US$599.8 million), as of the year ended March 31 last year.