Western Daily Press (Saturday)
Dairy giant snapped up for £975m
THE giant dairy firm that was ultimately spun out of the Milk Marketing Board has been snapped up by a Canadian company.
Canada’s Saputo has announced a £975 million takeover of Cathedral City and Clover owner Dairy Crest.
Under the terms of the deal, Dairy Crest investors will receive 620p per share in cash, an 11.7 per cent premium on Thursday’s closing price.
The Dairy Crest board is unanimously recommending the all-cash offer.
If the deal is backed by investors, the combined group’s headquarters will be located at Saputo’s head office in Montreal, Quebec.
The management of UK operations will continue to be based in Surrey, England.
Thousands of UK dairy farmers supply Dairy Crest and it also has a major cheese packing site in Frome, Somerset.
The Milk Marketing Board was founded in 1933 and essentially acted as a buyer of last resort for dairy farmers.
It turned the excess milk to make butter and cheese, branding it as Dairy Crest in the 1960s.
Later brands included Country Life, Clover and Cathedral City, before Dairy Crest went public in 1996.
Now, 22 years later, it has been snapped up by a Canadian dairy giant.
Saputo chairman and chief execu- tive Lino Saputo Jr said: “Dairy Crest is an attractive platform for Saputo and fits well within our growth strategy.
“We believe that under Saputo ownership, Dairy Crest will be able to accelerate its long-term growth and business development potential and provide benefits to Dairy Crest’s employees and stakeholders.
“This recommended offer represents a compelling opportunity for Dairy Crest shareholders, providing immediate value certainty.”
Saputo – one of the biggest dairy processors in the world – has grown recently through a series of acquisitions and the firm said its takeover of Dairy Crest is motivated by a desire to increase its international presence and enter the UK market.
It would mark the Canadian company’s first foray into Europe.
Saputo added that it does not envisage any material change to the research and development functions of Dairy Crest, nor does it intend to dispose of any material part of the group’s operations.