Saputo completes acquisition of UK-based Dairy Crest Group

Canadian firm Saputo has completed the acquisition of UK-based company Dairy Crest Group.

As per the terms of the agreement, Saputo has acquired the entire issued ordinary share capital of Dairy Crest for £6.20 per share, taking the total value of Dairy Crest’s capital to approximately £975m ($1.2bn).

The deal will be paid in cash and financed through funds drawn on a bank term loan facility.

The agreement was implemented by way of a court-sanctioned scheme of arrangement under the UK Companies Act 2006.

Headquartered in Esher, UK, Dairy Crest manufactures and markets cheese, butter, spreads and oils under brands, including Cathedral City, Clover, Country Life and Frylight. It also manufactures value-added dairy ingredients.

It has around 1,100 people in seven locations across the UK.

With the completion of the deal, Saputo is expanding its global presence and entering the UK market.

The deal was first announced in February when Saputo reached an agreement to acquire Dairy Crest for approximately £975m ($1.2bn).

Lazard acted as financial adviser, while Freshfields Bruckhaus Deringer and Stikeman Elliott served as its legal counsel.

National Bank Financial Markets and BMO Capital Markets acted as co-lead arrangers and joint bookrunners of the credit facility.

Last May, Saputo entered an agreement to purchase the activities of Ontario-based company Shepherd Gourmet Dairy.

The transaction was set to be carried out on a debt-free-basis at a purchase price of C$100m ($77.68m), which Saputo agreed to pay using available cash on hand and its credit facilities.