Dairy Crest, the UK dairy company behind products such as Cathedral City cheddar, has agreed to be bought by Canadian company Saputo in a deal worth just under £1bn.
Both companies have announced an agreement on Friday (22 February) on the terms of a cash acquisition by which Saputo will acquire Dairy Crest.
One of the biggest dairy processors in the world, Montreal-based Saputo will pay 620p a share, valuing Dairy Crest at £975m.
Headquartered in the UK, Dairy Crest is a large dairy company which manufactures and markets cheese, butters, spreads and oils under leading British brands, such as Cathedral City, Clover, Country Life and Frylight.
Dairy Crest employs approximately 1,100 people in seven locations across the country.
For the year ended March 31, 2018, Dairy Crest had revenues of approximately £456.8 million and profit after tax for the period of approximately £149.5 million.
The deal will enable Saputo to expand its international presence and enter the UK market by acquiring and investing in a 'well-established and successful industry player', a statement read.
Dairy Crest confirmed that 'virtually' all its 1,100 UK-based jobs will remain.