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Lactalis agrees £988m deal for Saputo's UK dairy business

The French dairy group takes over Cathedral City and Clover as Saputo retreats from a market squeezed by inflation and weaker consumer spending.

M&A News deals deskConsumer / Dairy · United Kingdom, Europe14 Aug 2026

Saputo agreed on 14 August to sell its UK Dairy Division, maker of Cathedral City cheddar and Clover spread, to Lactalis at an enterprise value of about £988m.

Saputo Dairy UK website: uk.saputo.com

Why Lactalis (B.S.A. SAS) is buying Saputo Dairy UK (Saputo's UK Dairy Division)

Saputo chief executive Carl Colizza described the sale as a disciplined step to refine the group's global footprint and focus on platforms where it competes from a position of strength. Saputo said the proceeds would improve its financial flexibility and could fund organic investment, capital projects and acquisitions.

“Today's announcement reflects a disciplined step to refine our global footprint”Carl Colizza, President and CEO, Saputo

Deal terms and financing

The buyer is B.S.A. SAS, a Lactalis entity. The perimeter includes five manufacturing facilities and the Cathedral City, Wensleydale, Davidstow, Clover and Country Life brands. The division generated about $1.2bn of revenue over the last four quarters, around 7% of Saputo's consolidated revenue.

Regulatory approvals and timing

Closing is expected by the end of the first quarter of calendar 2027, subject to customary conditions including regulatory approvals.

Market context

Saputo was the UK's leading maker of branded cheese and dairy spreads. Its UK business had faced high inflation, rising operating costs and weaker consumer spending, and Saputo left the UK infant formula market in 2025.

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