French dairy giant Lactalis is buying Saputo’s UK dairy business for £988 million, taking control of Cathedral City and several other well-known British dairy brands.
The deal includes Cathedral City, Wensleydale, Davidstow, Clover and Country Life, as well as five manufacturing sites across the UK.
Cathedral City is the biggest name in the deal. The brand is one of Britain’s best-known cheese brands and has a strong presence across supermarkets, with products ranging from traditional cheddar blocks to grated and sliced cheese.
For Lactalis, the acquisition significantly strengthens its position in the UK cheese market.
A major UK dairy deal
Saputo’s UK business generated around $1.2 billion in revenue over the last four quarters, underlining the size of the operation being acquired.
The Canadian dairy company entered the UK market in 2019 when it bought Dairy Crest for around £975 million. That deal brought Cathedral City and other established British dairy brands into Saputo’s portfolio.
Saputo is now selling the business for approximately £988 million, seven years after the original acquisition.
The transaction is subject to the usual regulatory approvals and other closing conditions.
Lactalis expands in Britain
Lactalis is one of the world’s largest dairy companies, with major interests in milk, cheese, butter and other dairy products.
The purchase gives the French group a larger manufacturing footprint in Britain and control of several established brands with strong supermarket distribution.
Cathedral City will be particularly important. Its high consumer recognition gives Lactalis an immediate position in the mainstream British cheese market.
Why the deal matters
The acquisition highlights the continuing consolidation of the global dairy industry.
Large dairy companies are increasingly using acquisitions to expand their brand portfolios, manufacturing capacity and access to major retail markets.
For British supermarkets, the deal will put some familiar dairy brands under the control of Lactalis, another major international supplier with significant scale.
For consumers, the most visible change will be behind the scenes: Cathedral City will have a new owner.
The brand itself is expected to remain a major player in Britain’s cheese market as Lactalis takes over the UK operation.