Saputo sells British activities to Lactalis

The Canadian Saputo has concluded a principle agreement for the sale of its British activities to Lactalis, it reports. The transaction has an estimated value of €1,156 million. The sale includes 5 production companies and a range of local brands, such as Cathedral City, Wensleydale, Davidstow, Clover, and Country Life. Together, the British activities generated revenue of around €1.4 billion over the past four quarters. That represents about 7% of Saputo's total revenue. Lactalis has long been active in the British market, but is thereby significantly strengthening its position. The transfer is still subject to approval, but this does not seem to be an insurmountable obstacle. The final transfer is scheduled for the end of the first quarter of 2027. What the sale means for the dairy farmers who supply the companies involved is not yet known. The average milk price in the United Kingdom is under strong pressure. Dairy farmers are having a hard time. Whether the situation will improve for them remains to be seen. Lactalis is not known in its home country France as a top payer, but in the UK it will have to compete with Arla and the German Müller Milch. The fact that Saputo is parting ways with its British activities does not seem like a major surprise. The company has been trying for several years to make the operation more profitable.