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
Source: FoodBev
The new center of expertise illustrates Roquette’s strategy of making its Vic-sur-Aisne site a dedicated place for plant protein development. This center will be a major asset to design the future technological processes that will bring new plant protein properties.
The new state-of-the-art facility will prioritise “sustainable production with advanced CO2 emission reductions and biomass reuse,” a company statement said. It will also enable Cargill to meet increasing demand for clean label texturising ingredients.
The move will assist in repaying outstanding debt (circa €1.6 billion or US$1.9 billion), while providing the company with increased financial flexibility. The IPO is also expected to support Azelis’ growth strategy and future acquisitions by providing funding and giving it access to capital markets.
