Cathedral City – the UK’s biggest-selling cheese brand – has a new owner as Saputo agreed to sell its entire UK dairy business to rival Lactalis for £988m.
The deal includes five manufacturing facilities and a stable of UK brands that includes Cathedral City, Wensleydale, Davidstow, Clover and Country Life.
Saputo’s UK dairy division, which employs around 1,300 staff, generated C$1.2bn (£630m) in revenues over the past four quarters, accounting for 7% of the Canadian group as a whole.
Cathedral City is the UK’s most popular cheese brand, according to The Grocer’s Top Products report, selling £320.2m worth of product last year.
The deal is expected to close by the end of March 2027, subject to regulatory approvals.
Lactalis said the acquisition would enable it to expand its portfolio with brands rooted in Britain’s dairy heritage.
Chairman Emmanuel Besnier added it was a “key milestone” for the French dairy group.
“By welcoming famous brands and recognised expertise into the group, we are strengthening our position in the UK market and reaffirming our commitment to providing consumers with high-quality dairy products,” Besnier said.
Saputo president and CEO Carl Colizza added the sale would let the group “refine our global footprint and sharpen our focus on platforms where Saputo competes from a position with strength”.
“The value to be realised recognises the expertise of the UK team, the quality of the operations and the market position of these leading brands,” Colizza said. “This transaction reinforces our strategic focus and enhances our financial flexibility as we continue to create long-term shareholder value through disciplined capital allocation.”
The deal is expected to close by the end of March 2027, subject to regulatory approvals. The proceeds from the sale are expected to enhance the company’s “financial flexibility and provide additional capacity to accelerate growth”.
“We are profoundly grateful to our colleagues in the United Kingdom for their dedication and contributions to Saputo,” said Colizza. “We look forward to seeing these strong assets and brands continue to build on their market positions under new ownership.”
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