Saputo signage at a facility in Montreal.Christopher Katsarov/The Canadian Press
Saputo Inc. SAP-T says it has agreed to sell its dairy division in the United Kingdom to Lactalis for nearly $1.86-billion.
The Montreal-based company says the deal includes five manufacturing facilities, along with its local brands such as Cathedral City, Wensleydale, Davidstow, Clover and Country Life.
Saputo says its U.K. operations have generated around $1.2-billion in revenues over the past four quarters, which represents 7 per cent of its total revenues.
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Saputo president and chief executive Carl Colizza says the move is meant to give the company more financial flexibility and “sharpen our focus on platforms where Saputo competes from a position of strength.”
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.
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.