Deal strengthens Lactalis’ position in Britain’s cheese and dairy market through the addition of major brands, production sites and an established workforce
French dairy giant Lactalis has agreed to acquire the UK dairy operations of Canadian company Saputo for approximately £988 million (US$1.33 billion), in a deal that will significantly expand Lactalis’ presence in the British dairy market. The transaction remains subject to regulatory approvals and is expected to close by the end of the first quarter of 2027.
The acquisition includes five production facilities across the UK and approximately 1,300 employees. The business generated around £800 million in revenue in its latest financial year, highlighting the scale of the operations being transferred to Lactalis.
The portfolio includes several well-known British dairy brands, including Cathedral City, Davidstow, Wensleydale Creamery, Country Life, Clover and Utterly Butterly. These brands give Lactalis a stronger position across the UK cheese, butter and dairy spreads categories.
The production network covers facilities in locations including Hawes in Yorkshire, Davidstow in Cornwall, Nuneaton in Warwickshire, Kirkby in Merseyside and the Isle of Bute in Scotland. The acquisition will therefore give Lactalis an extensive manufacturing footprint across Britain.
For Lactalis, the transaction represents a major step in expanding its UK operations and strengthening its portfolio of established dairy brands. The company has been pursuing an active acquisition strategy, with the Saputo transaction becoming its latest major move in the global dairy sector.
For Saputo, the sale forms part of a broader effort to refine its international portfolio and direct capital towards selected markets and growth opportunities. The company plans to use proceeds from the transaction for organic investments, capital projects and strategic acquisitions.
The deal is expected to reshape the competitive landscape of the UK dairy market, particularly in branded cheddar, cheese, butter and spreads. With Lactalis adding established British brands and production capabilities to its international portfolio, the acquisition further highlights the ongoing consolidation and strategic investment taking place across the global dairy industry.