French dairy giant Lactalis has acquired Saputo’s UK dairy division for approximately $1.33 billion, significantly strengthening its position in Britain’s cheese, butter and spreads markets.
The transaction gives the family-owned Lactalis Group control of several well-known British dairy brands, including Cathedral City, Davidstow, Wensleydale Creamery, Country Life, Clover and Utterly Butterly.
Lactalis strengthens position in UK dairy
The acquisition provides Lactalis with a substantial portfolio of established consumer brands. Cathedral City, in particular, is one of the UK’s leading cheddar brands and has maintained a strong presence in the market for decades.
The portfolio covers several important dairy categories, including:
- Cheddar and specialty cheeses
- Butter
- Spreads
- Other consumer dairy products
The acquired business is primarily focused on the UK market, with approximately 94% of sales generated through UK retail and foodservice channels. The remaining 6% comes from exports to North America, Europe and Asia-Pacific.
Five manufacturing facilities added
The deal also expands Lactalis’ UK manufacturing footprint.
Approximately 1,300 employees and five major production facilities across England and Scotland will become part of Lactalis’ global manufacturing network.
The facilities are located in:
- Hawes, Yorkshire
- Davidstow, Cornwall
- Nuneaton, Warwickshire
- Kirkby, Merseyside
- Isle of Bute, Scotland
These sites provide Lactalis with additional cheese and dairy processing capabilities while strengthening its access to established regional supply chains.
Strategic move for Lactalis
Lactalis Chairman Emmanuel Besnier described the acquisition as an important milestone in the group’s UK expansion strategy.
The combination of established British brands and regional manufacturing facilities is expected to strengthen Lactalis’ production capabilities and position across the UK’s dairy market.
The transaction also provides Lactalis with greater scale in categories such as cheddar, butter and spreads, where Saputo’s UK business has maintained a significant consumer presence.
Saputo focuses on portfolio optimisation
For Saputo, the divestment represents a broader effort to optimise its global portfolio and manufacturing footprint.
The company intends to use the transaction to improve financial flexibility and redirect capital toward strategic operating platforms, organic investments and potential acquisitions.
Saputo President and CEO Carl Colizza said the sale would allow the company to concentrate resources on areas where it believes it has stronger long-term competitive advantages.
What the deal means for the UK dairy industry
The acquisition highlights the continuing consolidation among major global dairy processors.
For Lactalis, the deal provides immediate access to established brands, manufacturing capacity and distribution networks. For Saputo, the transaction allows the company to streamline its portfolio and redeploy capital.
The deal also demonstrates the strategic importance of scale in mature dairy markets, where established brands, manufacturing efficiency and strong retail relationships remain key competitive advantages.
With the addition of Cathedral City, Davidstow, Country Life and other major brands, Lactalis is set to play an even larger role in Britain’s consumer dairy market.