Saputo to sell U.K. operations to Lactalis for around $1.86 billion
Advertisement
Read this article for free:
or
Already have an account? Log in here »
To continue reading, please subscribe:
Digital Subscription
One year of digital access for only $205*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.
To continue reading, please subscribe:
Add Free Press access to your Brandon Sun subscription for only an additional
$1 for the first 4 weeks*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.
Read unlimited articles for free today:
or
Already have an account? Log in here »
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.
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.
This report by The Canadian Press was first published Aug. 14, 2026.
Companies in this story: (TSX: SAP)
