Saputo continues to expand in the international market

Saputo Dairy Products (TSX: SAP) announced on February 22nd its intention to acquire the British company Dairy Crest (LON: DCG) for a value of approximately 1.7 billion Canadian dollars.

Dairy Crest is a leader in the production of cheddar cheese in the United Kingdom and holds more than 20% of local sales. It also works in the market of butter, oils and tardinades. Saputo agrees to pay £ 6.2 per share, the equivalent of $ 10.85 Canadian.

The acquisition of the company is however dependent on the shareholder vote, which will take place later in the year 2019. The good news is that the board of directors of Dairy Crest wishes to recommend unanimously to vote favorably. for the transaction. Approximately 1,100 employees, located in 7 different locations in the UK, will join the larger Saputo family.

This transaction is in addition to the many acquisitions of Lino Saputo Jr.’s global growth strategy, aiming to expand its market internationally. In October 2017, the company announced the acquisition of Murray-Goulburn Co-operative for $ 1.29 million, giving it the majority of the Australian dairy market. In November 2018, Saputo also completed the acquisition of F & A Dairy products, allowing it to increase its market share in the United States. The acquisition Dairy Crest would therefore expand its market in the United Kingdom. This first acquisition in Europe could notably enable Saputo to establish a growth platform on the continent.


Saputo also posted the results of its most recent quarter, representing profits of $ 342 million, up from the same quarter last year. The company says the increase is due to recent acquisitions. This is good news for the company, which had demonstrated earnings declines in the year 2018.


RADIO-CANADA (2019). Saputo achète Dairy Crest et pénètre le marché britannique.

[En ligne],

LES AFFAIRES (2019). Saputo affiche un profit de 342 m au 3e trimestre. [En ligne],

MORNINGSTAR (2019). Saputo announces an agreement to acquire Dairy Crest Group plc, A United Kingdom based dairy company. [En ligne],

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