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Canadian dairy giant Saputo has agreed to sell its UK dairy operations to French rival Lactalis in a landmark deal. The Cathedral City and Clover producer has entered into a definitive agreement to sell its UK dairy division for approximately £988 million. Saputo's divestment will see five manufacturing facilities and popular brands including Cathedral City, Wensleydale, Davidstow, Clover and Country Life transferred to the Lactalis portfolio. According to its own estimates, the Montréal-based firm's UK dairy arm generated approximately US$1.2 billion in revenue over the last four quarters, representing about 7% of its consolidated revenue. The deal is expected to be finalised by the first quarter of 2027, subject to customary closing conditions and regulatory approvals. Saputo said the proceeds from the sale will help enhance its financial flexibility and growth capacity. In a statemen given to the press, it added that it would "evaluate opportunities to deploy capital for organic investments, capital projects, and strategic acquisitions while maintaining focus on returns and long-term value creation." Carl Colizza, president and chief executive of Saputo, said: "Today's announcement reflects a disciplined step to refine its global footprint and sharpen its focus on platforms where Saputo competes from a position of strength. "The value to be realized recognizes the expertise of the UK team, the quality of the operations, and the market position of these leading brands. This transaction reinforces our strategic focus and enhances our financial flexibility as we continue to create long-term shareholder value through disciplined capital allocation." He added: "We are profoundly grateful to our colleagues in the United Kingdom for their dedication and contributions to Saputo. We look forward to seeing these strong assets and brands continue to build on their market positions under new ownership." Saputo is among the top 10 dairy processors globally, producing cheese, fluid milk, extended shelf-life milk and cream products, cultured products and dairy ingredients. Prior to the sale, the company was the leading manufacturer of branded cheese and dairy spreads in the UK. Saputo's decision to withdraw from the British dairy market comes after a tough period for the firm, marked by high global inflation, rising operational costs and reduced consumer spending. Last year, it downsized its UK dairy presence when it exited the local infant formula market altogether. Related topics. 25-Jun-2026 By Augustus Bambridge-Sutton The front-of-pack labelling scheme is facing a legal challenge over its algorithm changes

Saputo to sell U.K. operations to Lactalis for around $1.86 billion. Deal includes five manufacturing facilities and local brands Daniel Johnson for The Canadian Press Saputo Inc. says it has agreed to sell its dairy division in the United Kingdom to Lactalis for roughly $1.86 billion. The Montreal-based company said the deal includes five manufacturing facilities, along with its local brands such as Cathedral City, Wensleydale, Davidstow, Clover and Country Life. Saputo said its U.K. operations have generated around $1.2 billion in revenue over the past four quarters, which represents about seven per cent of its total revenue. "This transaction reinforces our strategic focus and enhances our financial flexibility as we continue to create long-term shareholder value through disciplined capital allocation," Saputo president and chief executive Carl Colizza said in a news release Friday (Aug. 14). The company expects the sale to close by the end of the first quarter of 2027 and says it is subject to certain conditions, including regulatory approvals. RBC analyst Irene Nattel said in a note to investors Friday that she views the move as positive. She said that while the U.K. segment "enjoys a position of branded product leadership, it has also struggled with reconstituting profitability." "Today's announcement crystallizes value for this segment at a level slightly above (Saputo's) entry value in 2019 and at a multiple above (Saputo's) current valuation," she said. Saputo announced a deal earlier this year to sell an 80 per cent stake in its dairy division in Argentina to Gloria Foods, the dairy and food holding company of Grupo Gloria. Last week, Saputo reported net earnings of $183 million during its first quarter, up from $157 million last year. That amounted to diluted net earnings per share of 45 cents, compared with 38 cents during the prior-year quarter. Saputo's revenue came in at $4.42 billion for the period ending June 30, rising year-over-year from $4.36 billion.

Saputo earnings surge ten percent on protein growth focus. Saputo fiscal 2026 EBITDA jumped 10.4% to C$1.66B as high-protein investments and plant modernizations drive operational efficiency. Capital expenditure rollouts deliver structural margin expansion while net leverage drops well below strategic targets. Adjusted EBITDA at Saputo climbed 10.4% year-on-year to C$1.66 billion for fiscal 2026, driven by strong North American volumes and robust international selling prices for specialty cheeses and dairy ingredients. Despite a 1.5% top-line revenue decline to C$17.55 billion caused by softer U.S. block market baselines, operating margins expanded by over 100 basis points to reach 9.5%. Higher throughput across automated processing units successfully offset lower domestic fluid prices, generating C$1.51 billion in operating cash flows. Modernization investments across primary operating divisions are yielding immediate operational efficiencies following the completion of major capital expenditure cycles. The strategic C$180 million expansion at the Waupun, Wisconsin facility raised high-protein ingredient capacity by approximately 35%, positioning the processor to capitalize on growing global demand for value-added fractions. Infrastructure consolidation, including the closure of legacy plants and the ramp-up of modernized distribution hubs, provided significant margin support across North American operations. International divisions delivered notable earnings expansion, led by a 20% EBITDA surge in Australia to C$162 million on stronger cheese and ingredient export realisations. European operations generated a 21% earnings gain to reach C$128 million, aided by streamlined cheese packaging footprint in the United Kingdom. These regional gains occurred alongside a portfolio refinement strategy that included divestments from non-core markets to concentrate resource allocation across four core operating platforms. Balance sheet deleveraging accelerates the company's flexibility for target-driven acquisitions and capital returns to shareholders. Net debt to adjusted EBITDA dropped to 1.47 times, falling well below the historical long-term leverage target of 2.25 times. Strong cash generation enabled C$679 million in share repurchases, alongside a 5% increase in the quarterly dividend payout, supported by low debt obligations and optimized working capital management. Strategic priorities moving into fiscal 2027 center on high-margin commercial segments, specifically protein ingredients, functional dairy items, and foodservice channels. Management is deploying predictive analytics, automated supply chain management, and target-driven M&A frameworks to maintain volume growth across primary markets. First-quarter momentum confirms sustained operational strength, with preliminary adjusted EBITDA rising nearly 8% year-on-year to C$427 million. You may be interested in. Legal Notice Related notes. Buy & sell dairy productos in. Join to.