Lactalis to Acquire Saputo UK Dairy Division for £988 Million

French dairy group Lactalis has entered into a definitive agreement to acquire the entire UK dairy division of Canadian processor Saputo for approximately £988 million. The transaction includes five manufacturing facilities and a portfolio of prominent brands, including Cathedral City, Clover, Wensleydale, Davidstow, and Country Life. The deal is expected to close by the end of the first quarter of 2027, pending regulatory approvals.

The acquired division employs roughly 1,300 people and generated £630 million in revenue over the past year, with Cathedral City alone accounting for £320.2 million in sales. Through this purchase, Lactalis will become the leading supplier of cheddar, butter, and spreads in the United Kingdom. The acquisition includes the Wensleydale Creamery in Hawes, North Yorkshire, which contributes £12 million annually to the local economy.

Saputo decided to divest the assets following a period of high global inflation, rising operational costs, and reduced consumer spending. The company previously exited the UK infant formula market and intends to use the proceeds from this sale to increase financial flexibility and fund organic investments and strategic acquisitions.