UK – Canadian dairy company, Saputo has announced that it has completed the acquisition of Dairy Crest, a United Kingdom-based milk products company in a transaction valuing the company at US$1.2 billion (£975 million).
Dairy Crest adds Saputo a portfolio of cheese, butters, spreads and oils under leading British brands, such as Cathedral City, Clover, Country Life and Frylight, and value-added dairy ingredients.
The company employs approximately 1,100 people in seven locations across the United Kingdom.
In the year ended March 31, 2018, Dairy Crest recorded had revenues of approximately £456.8 million (US$596.46 million) and £149.5 million (US$195.21 million) in profit after tax.
The company sold its dairy unit comprising of ready-to-drink flavoured milk brand Frijj, cream, bulk butter and milk powders, to Müller in a deal approximated at US$104.42 million in 2015.
Last year, Dairy Crest invested US$97.89 million in expansion of its creamery in Davidstow, Cornwall in a bid to boost its Cathedral City and Davidstow cheese brands.
The deal which has been financed through funds drawn on a new bank term loan facility, offers Saputo a significant footprint in the UK dairy market.
It also expands the company’s international presence and entry into the UK by acquiring and investing in a well-established and successful industry player with a solid asset base and an experienced management team.
Saputo which is looking to expand its global footprint in the dairy market, acquired F&A Dairy Products, Inc. for US485 million including two manufacturing facilities located in Las Cruces, New Mexico, and Dresser, Wisconsin (USA).
It acquired Australia’s struggling dairy business Murray Goulburn in 2017, and other businesses it has agreed to buy include Montchevre, Shepherd Gourmet Dairy.
Saputo, which is one of the world’s leading dairy processors, said it is building a new dairy processing facility worth US$240 million in Port-Coquitlam, Canada.