Saputo has said it will acquire Dairy Crest for approximately £975 million, in a move to expand its international presence and enter the UK market.
UK-headquartered Dairy Crest manufactures and markets cheese, butter, spreads and oils under brands such as Cathedral City, Clover, Country Life and Frylight. It employs around 1,100 people in seven locations across the UK.
For the year ended 31 March 2018, Dairy Crest had revenues of approximately £456.8 million and profit after tax of £149.5 million.
Montreal-based Saputo said Dairy Crest is “a well-established and successful industry player with a solid asset base and an experienced management team”, adding that the Dairy Crest portfolio fits with its growth strategy.
In 2015, Dairy Crest sold its dairy unit to Müller in a deal worth £80 million. The division made the ready-to-drink flavoured milk brand Frijj, cream, bulk butter and milk powders.
Dairy Crest brands include Davidstow, Utterly Butterly and Country Life.
Last year, Dairy Crest revealed a £75 million expansion of its creamery in Davidstow, Cornwall. The company said the investment will boost growth of its Cathedral City and Davidstow cheese brands, increase whey production and reduce the facility’s environmental impact.
One of the world’s top ten dairy processors, Saputo agreed a CAD 1.29 billion ($1 billion) to buy Australia’s struggling dairy business Murray Goulburn in 2017 – taking on 2,300 employees and 11 manufacturing facilities in Australia and China.
It has since bought US goat’s cheese manufacturer Montchevre and speciality cheeses and yogurts maker Shepherd Gourmet Dairy.
Last November, the company revealed plans to build a new dairy processing facility in Port-Coquitlam, Canada, in a move to expand its business in western Canada.
Saputo said it expects the Dairy Crest transaction to close in the second quarter of 2019.
By Jules Scully
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.