Lactalis, the French family-owned dairy company has reached an agreement with Canadian dairy group Saputo Inc., to acquire its UK Dairy Division.

According to the company, the acquisition allows Lactalis to become a leading supplier of cheddar and butter and spreads in the UK.

The transaction is expected to close by the end of the first quarter of 2027, subject to certain closing conditions, including regulatory approvals.

Saputo Inc.’s UK dairy division is well-known for its portfolio of popular dairy brands.

The agreement will enable Lactalis UK to expand its offering with products such as Cathedral City and Davidstow cheddar cheeses, Wensleydale Creamery cheeses, including Yorkshire Wensleydale with Protected Geographical Indication (PGI) status, Country Life butter as well as Clover and Utterly Butterly spreads.

Over the past 60 years, Cathedral City has established itself as the UK’s favourite cheddar brand.

Distributed through specialist cheese retailers, supermarkets and foodservice outlets, the subsidiary’s products are primarily sold in the UK, which accounts for 94% of sales.

The remaining 6% is exported to Europe, Asia-Pacific and north America.

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

"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 company employs approximately 1,300 people and operates five production sites located in Hawes (Yorkshire), Davidstow (Cornwall), Nuneaton (Warwickshire), Kirkby (Merseyside) and the Isle of Bute (Scotland).

In its latest financial year, the business generated revenues of €800 million.