Saputo sells UK dairy arm to Lactalis

By Stephanie Brooks 16/08/2026 2 min read 2 views

Saputo has agreed to sell its UK dairy division to French rival Lactalis for £988 million, marking a major shift in the British cheese market.

Deal details and assets involved

The transaction covers five manufacturing plants and a portfolio of well‑known British brands, including Cathedral City, Wensleydale, Davidstow, Clover and Country Life. Saputo’s UK arm employs roughly 1,300 workers and generated C$1.2 billion (£630 million) in revenue over the last twelve months, representing about 7 % of the Canadian company’s total sales.

Cathedral City, the nation’s best‑selling cheese according to a recent industry ranking, recorded £320.2 million in sales last year. The acquisition will give Lactalis a foothold in that segment and broaden its presence in the United Kingdom.

Statements from company leaders

Lactalis chairman Emmanuel Besnier described the purchase as a “key milestone” for the group, saying the addition of “famous brands and recognised expertise” would strengthen its UK position and reaffirm its commitment to quality dairy products. Saputo president and CEO Carl Colizza noted that the sale allows the company to “refine our global footprint and sharpen our focus on platforms where Saputo competes from a position with strength.” He added that the deal “recognises the expertise of the UK team, the quality of the operations and the market position of these leading brands.”

Both executives highlighted that the proceeds will improve Saputo’s financial flexibility and support future growth initiatives. The companies expect the transaction to close by the end of March 2027, pending regulatory clearance.

The move reflects a broader trend of consolidation in the dairy sector, where larger multinational groups are seeking to acquire established regional brands to expand their market share. While the sale removes a Canadian presence from the UK, it consolidates Lactalis’s position as a leading player in the European cheese market.

Integration of the UK brands into Lactalis’s existing operations could bring changes to supply chains, product development and marketing strategies. The new owner has signaled an intention to preserve the heritage of the acquired brands while leveraging its global resources.

Analysts may watch how Lactalis balances the legacy of British dairy traditions with its own corporate objectives. The company’s ability to maintain brand loyalty and manage cost efficiencies will likely determine the long‑term success of the deal.