Saputo sells UK cheese brands to consolidating rival Lactalis
By Jed Nykolle Harme
August 19, 2026
Photo Credits: Christopher Katsarov
Saputo and Lactalis have announced that Saputo has agreed to sell its UK dairy division to Lactalis at an enterprise value of approximately £988 million, with the deal expected to close by the end of the first quarter of 2027 subject to regulatory approval. It matters because it hands the UK's leading branded cheese and spreads manufacturer to a rival already building UK scale, concentrating production capacity behind fewer, larger owners.
Saputo is a Montreal-based dairy processor and one of the world's top ten dairy manufacturers, operating across Canada, the United States, Argentina, Australia and the UK, with group revenue of C$19.1 billion in its most recent financial year.
Lactalis is a French, family-owned dairy group headquartered in Laval and led by chief executive Emmanuel Besnier, operating 266 production sites across 51 countries with around 85,500 employees and global revenue of $34.1 billion.
The transaction covers five UK manufacturing sites, in Hawes, Davidstow, Nuneaton, Kirkby and the Isle of Bute, employing around 1,300 people, alongside brands including Cathedral City, Wensleydale, Davidstow, Clover and Country Life.
Saputo's UK division generated approximately $1.2 billion in revenue over the past four quarters, representing 7 per cent of group revenue, with 94 per cent of sales generated within the UK market itself.
Saputo president and chief executive Carl Colizza said: "Today's announcement reflects a disciplined step to refine our global footprint and sharpen our focus on platforms where Saputo competes from a position of strength."
This is Lactalis's fourth acquisition in two months, following its deal to acquire Agropur Cooperative's fine cheese division in Canada, underscoring an active period of consolidation as the group extends its position across UK, European and North American dairy markets.
For the sector, the deal signals that scale in UK branded cheese and spreads increasingly sits with a small number of pan-European operators, raising the bar for independent processors competing for the same retail shelf space and foodservice contracts.
Source: CTV News / FoodBev Media / Yahoo Finance (BigGo)
