Saputo to expand its international presence and enter the UK market by acquiring and investing in a well-established and successful industry player
Saputo Inc. announces that it has reached an agreement with Dairy Crest Group plc (“Dairy Crest”) on the terms of a cash acquisition by which Saputo will acquire the entire issued and to be issued ordinary share capital of Dairy Crest for £6.20 per ordinary share, valuing Dairy Crest’s existing issued and to be issued ordinary share capital at approximately £975 million (approximately CDN $1.7 billion). The board of directors of Dairy Crest intends to unanimously recommend to shareholders of Dairy Crest to vote in favour of the Transaction.
The Transaction is expected to close in the second quarter of calendar year 2019. Saputo has received irrevocable undertakings to vote, or procure the vote, in favour of the transaction from all of the directors of Dairy Crest who holds shares in Dairy Crest.
Dairy Crest is a large dairy company which manufactures and markets cheese, butters, spreads and oils under leading British brands, such as Cathedral City, Clover, Country Life and Frylight, and value-added dairy ingredients.
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. Dairy Crest is an attractive platform which fits with Saputo’s growth strategy.