Lactalis strikes deal for Cathedral City owner Saputo UK

French dairy giant Lactalis is set to take control of Cathedral City, Country Life and a string of other major British dairy brands after agreeing to acquire Saputo’s UK dairy business.

The deal covers five production sites, around 1,300 employees and a business which generated revenues of €800 million (£684.4 million) in its latest financial year.

Lactalis said the acquisition would make it a leading UK supplier of cheddar, butter and spreads, significantly expanding its position in the British dairy market.

The transaction is expected to complete by the end of the first quarter of 2027, subject to regulatory approval and other customary closing conditions.

Saputo’s UK portfolio includes Cathedral City and Davidstow cheddar, alongside Wensleydale Creamery cheeses.

It also includes Country Life butter and the Clover and Utterly Butterly spreads brands.

Yorkshire Wensleydale, produced by Wensleydale Creamery, carries Protected Geographical Indication status.

The manufacturing footprint included in the deal stretches across Britain, with sites at Hawes in Yorkshire, Davidstow in Cornwall, Nuneaton in Warwickshire, Kirkby in Merseyside and the Isle of Bute in Scotland.

The vast majority of the division’s business is focused on the domestic market, with the UK accounting for 94% of sales.

The remaining 6% is exported to markets across Europe, Asia-Pacific and North America.

Cathedral City is among the most prominent brands changing hands and has been established in the UK cheddar market for around 60 years.

Emmanuel Besnier, chairman of Lactalis, said: “This acquisition marks a key milestone in Lactalis’ development in the United Kingdom.”

He added: “By welcoming famous brands and recognised expertise into the group, we are strengthening our position in the UK market and reaffirming our commitment to providing consumers with high-quality dairy products.”

The acquisition would give Lactalis a substantially larger presence across the UK cheese, butter and spreads categories if approved.

It would also bring a sizeable British manufacturing operation into the French family-owned dairy group.

The announcement did not set out whether the transaction would result in changes to existing milk supply arrangements or employment across the five UK sites.

If completed, the deal would transfer around 1,300 employees, five manufacturing facilities and some of Britain’s best-known dairy brands into the Lactalis group.