Saputo is bolstering its international division in with an all-new acquisition. This week, the dairy giant announced it has reached an agreement with Dairy Crest Group on the terms of a £975 million ($1.28 billion) cash acquisition.
“The transaction would enable Saputo to expand its international presence and enter the UK market by acquiring and investing in a well-established and successful industry player with a solid asset base and an experienced management team,” Saputo wrote in a press release. “Dairy Crest is an attractive platform which fits with Saputo’s growth strategy.”
Dairy Crest Group is headquartered in the United Kingdom and is a manufacturer of cheese, butter, spreads, and oils, including some of Britain’s leading brands like Cathedral City, Clover, Country Life, and Frylight. Currently, the company employs 1,100 people working at seven locations across the UK. According to a press release, Dairy Crest had revenues of approximately £456.8 million ($498.2 million) for the year ended March 31, 2018.
Saputo has chosen Lazard as the financial advisor and Freshfields Bruckhaus Deringer LLP and Stikeman Elliot LLP as legal counsel for the transaction. The transaction is subject to approval by the shareholders of Dairy Crest (the company’s Board of Directors plan to unanimously recommend the vote), the court’s sanction of the scheme of arrangement, and other conditions customary to this type of transaction.
Saputo expects to close the acquisition by the second quarter of 2019. For more information, click here.
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