Dairy Crest agrees £975m sale to Canada’s Saputo
Canadian
The board of Dairy Crest, which also owns the Clover and Country Life butter and spread brands, has unanimously recommended that shareholders accept the offer.
The deal price of 620p in cash for each Dairy Crest share by Saputo’s unit Saputo Dairy UK represents a premium of about 11.7% to the London-listed company’s close of 555p on Thursday.
Dairy Crest, which employs around 1,100 people across seven UK sites, saw revenues increase 10% to £456.8m, in its latest full-year results, for the year ended 31 March 2018.
“Saputo is one of the top ten dairy processors in the world. Both companies have built strong positions in the cheese sectors in their respective home markets,” commented Stephen Alexander, chairman of Dairy Crest.
Lino Saputo, chairman and chief executive of Saputo, said: “Dairy Crest is an attractive platform for Saputo and fits well within our growth strategy. “We believe that under Saputo ownership, Dairy Crest will be able to accelerate its long-term growth and business development potential.” The deal is scheduled to complete in the second quarter subject to shareholder approval.
In recent years, Dairy Crest has shifted its focus towards its more profitable cheese business after selling of its dairies to rival Muller in 2014.
Source: https://www.thegrocer.co.uk/mergers-and-acquisitions/city-snapshot-dairy-crest-agrees-975m-sale-to-canadas-saputo/590521.article13.2%+
Dairy Crest shares have surged 13.2% to 628.3p in early trading.



