The directors of Dairy Crest have recommended a cash acquisition of the business by Canadian dairy firm Saputo, which values the company at £975 million (€1.12 billion).
In a statement, the directors said that shareholders would be in line to receive 620 pence for each share, which is an 11.7% premium on the share price reported the previous day.
The directors described Saputo's offer for the business as 'fair and reasonable', and said that they 'intend unanimously to recommend Dairy Crest shareholders to vote, or procure the vote, in favour of the scheme'.
Compelling Value
"The board is unanimously recommending this all-cash offer by Saputo to buy Dairy Crest at an attractive premium, which represents compelling value for Dairy Crest Shareholders," said Stephen Alexander, chairman of Dairy Crest.
"Dairy Crest is a leading UK dairy company and the proud manufacturer of Cathedral City, the largest UK cheese brand. Saputo is one of the top ten dairy processors in the world. Both companies have built strong positions in the cheese sectors in their respective home markets.
"The Acquisition should enable Dairy Crest to benefit from Saputo's global expertise and strong financial position to fulfil and accelerate its growth ambitions."
Elsewhere, Lino A. Saputo, the chief executive of Saputo, said that the Dairy Crest business "fits well" within the Montreal-based firm's growth strategy.
"We believe that under Saputo ownership, Dairy Crest will be able to accelerate its long-term growth and business development potential and provide benefits to Dairy Crest's employees and stakeholders," Saputo said. "This recommended offer represents a compelling opportunity for Dairy Crest Shareholders, providing immediate value certainty."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
