MONTREAL – Saputo Inc. has signed an agreement to purchase British cheese maker Wensleydale Dairy Products Ltd. for $ 39 million.
The North of England Creamery operates two facilities in North Yorkshire and employs around 210 people who make a variety of specialty and regional cheeses.
Wensleydale sources milk from 40 local farms and uses its own starter crops to make cheeses that it exports around the world.
“Wensleydale Dairy Products is home to an immense amount of passion, care and tradition,” Saputo CEO and President Lino Saputo said in a statement Monday.
“Not only is it a well established UK company with high quality products and award winning cheeses, but our corporate cultures are well aligned.”
The deal is the latest in a series of strategic acquisitions by Montreal-based Saputo, one of the world’s largest dairy processors with major operations in Canada, Australia, Argentina, the United States and the United States. -United.
In May, Saputo announced that it had acquired Bute Island Foods, a Scottish manufacturer, distributor and distributor of vegan cheese. He also announced an agreement to buy the Reedsburg, Wisconsin, plant from Wisconsin Specialty Protein, which manufactures ingredients like goat whey, organic lactose and other dairy powders.
The two deals were part of a larger plan by the Montreal-based company to strengthen its holdings in non-dairy cheeses and value-added ingredients.
The acquisition of Wensleydale, which is subject to regulatory requirements, is expected to be finalized later this month.
The company will join the UK dairy division of Saputo in its Europe segment.
Irene Nattel, analyst at RBC Dominion Securities Inc., said in a note to a client that the deal will expand the breadth and depth of Saputo’s specialty offering in Europe and is in line with the company’s strategy. dairy aimed at strengthening its core business, including specialty cheeses.
“Although the deal is relatively small, it strengthens (Saputo) ‘s positioning as one of the world’s ten largest dairy producers with market leading positions in virtually every attractive milk shed around the world,” said Nattel said in the note.
This report by The Canadian Press was first published on July 5, 2021.
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