Saputo from Canada to buy Dairy Crest for close to 1 billion.
Posted on: 01/03/19
Once Dairy Crest succeeded in offloading its liquid business to Muller it was inevitable the more profitable and attractive. Davidstow Cheese facility would be sold and it's heading for ownership by Saputo who are in the top 10 largest in the world.
Canadian owned world dairy giant Saputo have made a cash offer of £6.20 per share totalling £964 million and Dairy Crest board approval is set to be unanimous.
Dairy Crest is certainly a solid, branded profitable operation which for the last financial year delivered a profit after tax of 150 million.
It's good news for Dairy Crest share holders, great news CEO Mark Allen (who will be off with the Loot into the Sun set) and appears to be good news for the Dairy Crest farmer suppliers.
Saputo have no operations in Europe which means a very limited if not negligible threat from Saputo importing cheese to the UK.
It's a near certainty Saputo will change very little and will certainly value their inherited supplying farmers who should view this as a great result and will simply see business as usual.
Another advantage is that Saputo will be in a strong position to fund and accelerate growth and expansion at the Davidstow processing facility.