Dairy Crest is to sell its French spreads business St Hubert to Montagu Capital for £344 million. For the year ended March 31st 2012, St Hubert generated EBITDA of £41.52 million and its gross assets were £141 million.
In a statement, the company said: 'We are delighted to have agreed in principle the proposed disposal of St Hubert, at a price which reflects the excellent progress the business has made under our ownership.
'Following the transaction, Dairy Crest will remain a broadly based dairy business entirely focused on the UK with strong brands including Cathedral City, Country Life, Clover and Frijj. It intends to continue to build on the success of its UK branded foods business and restore its Dairies business to a satisfactory level of profitability in the medium term.
'Over the coming months, from a strengthened financial position, Dairy Crest will consider a range of options taking into account the interests of all stakeholders.'
The company said it expects the sale to be completed by September 30th, at which time the agreement expires.
The group's brands include some of those pictured above with the St Hubert spreads.