Cathedral Metropolis cheese maker Dairy Crest has agreed to a takeover by a Canadian agency in a deal price practically £1bn.
Saputo, one of many world’s largest dairy processors, pays 620p a share, valuing the the UK firm at £975m.
Dairy Crest, whose different manufacturers embrace Nation Life butter, Totally Butterly and Clover unfold, noticed its shares surge by 12.9% after the proposed sale was introduced.
Saputo, which doesn’t at the moment have a foothold in Europe, stated it was pushed by “a need to extend its worldwide presence and enter the UK market by buying and investing in a well-established and profitable trade participant”.
The Canadian agency noticed Dairy Crest “as a sexy platform for development within the UK”.
It supposed Dairy Crest would proceed to fabricate its merchandise from its current amenities within the UK “managed and run by the present senior administration and workers”.
Saputo signalled most jobs could be secure, foreseeing “solely restricted rationalisation of worker roles following the acquisition, primarily focused at company and help capabilities”.
The corporate’s chairman and chief government Lino Saputo Jr stated: “Dairy Crest is a sexy platform for Saputo and suits properly inside our development technique.
“We imagine that beneath Saputo possession, Dairy Crest will be capable of speed up its long-term development and enterprise improvement potential and supply advantages to Dairy Crest’s workers and stakeholders.”
Dairy Crest chairman Stephen Alexander stated: “Dairy Crest is a number one UK dairy firm and the proud producer of Cathedral Metropolis, the biggest UK cheese model.
“Saputo is without doubt one of the high ten dairy processors on the planet. Each firms have constructed sturdy positions within the cheese sectors of their respective residence markets.
“The acquisition ought to allow Dairy Crest to learn from Saputo’s international experience and robust monetary place to fulfil and speed up its development ambitions.
“The companies have sturdy shared values and the board is assured that Saputo’s plans to spend money on and develop the Dairy Crest enterprise imply the proposed transaction is constructive for all its stakeholders.”