The producers of brands like Cathedral City cheese and Country Life butter, Dairy Crest Group is to be acquired by Saputo Dairy, one of Canada's largest dairies.
Under the terms of the acquisition, each scheme shareholder will receive 620 pence in cash for each Dairy Crest Share, valuing Dairy Crest's existing issued and to be issued ordinary share capital at approximately £975m.
Stephen Alexander, Chairman of Dairy Crest, said, 'The board is unanimously recommending this all-cash offer by Saputo to buy Dairy Crest at an attractive premium, which represents compelling value for Dairy Crest Shareholders. Dairy Crest is a leading UK dairy company and the proud manufacturer of Cathedral City, the largest UK cheese brand. Saputo is one of the top ten dairy processors in the world. Both companies have built strong positions in the cheese sectors in their respective home markets.
'The Acquisition should enable Dairy Crest to benefit from Saputo's global expertise and strong financial position to fulfil and accelerate its growth ambitions. The businesses have strong shared values and the board is confident that Saputo's plans to invest in and grow the Dairy Crest business mean the proposed transaction is positive for all its stakeholders.
'The price premium Saputo is offering reflects Dairy Crest's portfolio of market-leading brands, its manufacturing and innovation capabilities as well as its experienced management team, who will continue to run the business under Saputo's ownership. It is for these reasons that the board is unanimously recommending this transaction to Dairy Crest Shareholders.'
Lino A. Saputo, Jr, Chairman and CEO of Saputo Inc, said, 'Dairy Crest is an attractive platform for Saputo and fits well within our growth strategy. We believe that under Saputo ownership, Dairy Crest will be able to accelerate its long-term growth and business development potential and provide benefits to Dairy Crest's employees and stakeholders. This recommended offer represents a compelling opportunity for Dairy Crest Shareholders, providing immediate value certainty.'
The Surrey-based Dairy Crest, which dates back to 1933, sold its dairies business in 2015. The company manufactures brands such as Country Life, Utterly Butterly, Clover, Willow and Vitalife butters, spreads and oils, and Davidstow and Cathedral City cheeses.
