Saputo to make its British entrance with acquisition of Dairy Crest

By Nikita Chaurasia  | Date: 2019-02-24

Saputo to make its British entrance with acquisition of Dairy Crest

Dairy Crest plans to advise its shareholders to vote in favor of the deal as it considers the terms of the deal to be fair and reasonable.

Saputo Inc., a Montreal-based Canadian dairy company, has entered the British market with an agreement to buy Dairy Crest Group Plc., a leading British dairy products company. The deal has reportedly been finalized at £975 million ($1.27 billion).

For Saputo, Dairy Crest is an attractive growth platform for the company in the UK as Dairy Crest is expected to make its products from existing facilities in the country. Dairy Crest’s Country Life butter as well as Davidstow and Cathedral City cheese brands would complement Saputo’s cheese business which comprises Cheese Heads and Armstrong Cheese.

Remarkably, the deal comes at a time when Britain is only one month away from its exit from the European Union which is anticipated to create problems for the supply chains and raise prices of dairy products. In January, Dairy Crest has announced that it will be buying ingredients and packaging material to create a buffer to offset the effects of Brexit in spite of the company’s supply chain and customer base being primarily based in Britain.

Sources close to the matter suggest that the companies began their discussion in January 2019 and have moved rapidly. Dairy Crest plans to advise its shareholders to vote in favor of the deal as it considers the terms of the deal to be fair and reasonable.

According to sources, Dairy Crest has been shifting its focus and strategy to make its cheese and spreads business more profitable and therefore has been selling its dairy operations in 2014 when it suffered from the low milk prices in Britain. Saputo is reportedly one of the largest dairy companies in Canada and has been growing steadily through around 30 acquisition deals ever since it became a publicly traded company in 1997.

Saputo said that the deal will be funded by National Bank of Canada and Bank of Montréal who will provide debt under a fully underwritten credit agreement.

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More >>

More News By Nikita Chaurasia

Swiftly achieves Unicorn status with $100M Series C led by BRV Capital

Swiftly achieves Unicorn status with $100M Series C led by BRV Capital

By Nikita Chaurasia

Swiftly Systems has reportedly achieved unicorn status, securing in funding through a Series C round. The prominent BRV Capital Management led this funding initiative. According to the earlier reports, Swiftly was adopted by hundreds of consumer b...

Rainforest nations unify to demand cash for climate & biodiversity preservation

Rainforest nations unify to demand cash for climate & biodiversity preservation

By Nikita Chaurasia

As per the reports, twelve nations with rainforests united to establish a collective initiative aiming to address climate change and safeguard biodiversity at summit held in Brazil. The declaration, titled "United for Our Forests," emerged ...

AI Chatbot, Llama 2, unveiled by Meta for commercial use via Microsoft

AI Chatbot, Llama 2, unveiled by Meta for commercial use via Microsoft

By Nikita Chaurasia

Meta Platforms has recently introduced Llama 2, an artificial intelligence large language model, for commercial use in collaboration with major cloud providers like Microsoft. Instead of charging for access or usage, Meta aims to share the model with...

Moderna signs agreement to explore mRNA medicines in China

Moderna signs agreement to explore mRNA medicines in China

By Nikita Chaurasia

Moderna Inc, a leading vaccine manufacturer, reportedly announced on Wednesday that it has entered into a memorandum of understanding (MoU) and a land collaboration agreement aimed at exploring opportunities for researching, developing, and producing...

Nike and Epic Games collaborate to launch Airphoria NFT in Fortnite

Nike and Epic Games collaborate to launch Airphoria NFT in Fortnite

By Nikita Chaurasia

The American footwear design & manufacturing company, Nike and Epic Games, the creators of the popular online game Fortnite, have joined forces in an exciting new collaboration. The partnership aims to bring about a groundbreaking change in the d...