Saputo to sell UK dairy unit to Lactalis

Saputo Inc. has signed a definitive agreement to sell its Dairy Division (UK) to B.S.A. SAS, part of the Lactalis group, valuing the business at an enterprise value of approximately £988 million. The transaction represents a significant portfolio move for Saputo, involving the transfer of a sizeable portion of its international dairy footprint.

The sale is expected to close by the end of the first quarter of calendar 2027, provided customary closing conditions are met and applicable regulatory approvals are obtained. Until completion, the Dairy Division (UK) remains part of Saputo’s consolidated operations.

The transaction covers five manufacturing facilities in the United Kingdom, reflecting a substantial production base. Alongside the physical assets, the deal includes several well-known local dairy brands that hold established positions in the UK market.

Brands involved in the sale include Cathedral City, Wensleydale, Davidstow, Clover and Country Life. These labels broaden Lactalis’s access to UK consumers while marking Saputo’s exit from these specific brand platforms in the country.

Over the last four quarters, Saputo’s Dairy Division (UK) generated approximately $1.2 billion in revenues. This performance accounted for about 7% of Saputo’s consolidated revenues over the same period, underlining the division’s scale within the overall group.

The enterprise value of roughly £988 million implies a substantial monetisation of a business that, while important, represents a minority share of total group revenue. The deal converts this revenue stream into financial resources that Saputo plans to redeploy.

Saputo’s president and CEO, Carl Colizza, described the sale as a disciplined step to refine the company’s global footprint and to sharpen its focus on platforms where it competes from a position of strength. The transaction is framed as part of a broader strategic effort to prioritise areas offering the company stronger competitive advantages.

The company expects proceeds from the sale to enhance its financial flexibility and provide additional capacity to accelerate growth. Within its capital allocation framework, Saputo plans to evaluate opportunities to deploy this capital into organic investments, capital projects and strategic acquisitions, while maintaining an emphasis on attractive returns and long-term value creation.

Completion of the transaction remains subject to standard closing conditions and the receipt of required regulatory approvals. Saputo has highlighted these conditions and the anticipated timing to the end of the first quarter of calendar 2027 as forward-looking elements that may be affected by future developments.

The company has issued cautionary language regarding such forward-looking statements, including the expected timing and benefits of the sale and its broader strategic objectives. These statements reflect management’s current expectations and are not guarantees of future performance or outcomes.