LONDON (Alliance News) - Cathedral City cheese maker Dairy Crest Group PLC on Friday said Canadian firm Saputo Inc will acquire the company in a deal valuing Dairy Crest at around GBP975 million.
Saputo will pay 620 pence per share for Dairy Crest, a premium of around 12% to the FTSE 250-listed company's 555p closing price on Thursday and a 21% premium to its 30-day volume weighted average share price of 488p.
Dairy Crest's directors will accept the deal and have "unanimously" recommended Dairy Crest shareholders do the same.
"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 Dairy Crest Chair Stephen Alexander.
"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 price premium Saputo is offering reflects Dairy Crest's portfolio of market-leading brands, its manufacturing and innovation capabilities as well as its experienced management team, who will continue to run the business under Saputo's ownership. It is for these reasons the board is unanimously recommending this transaction to Dairy Crest shareholders," Alexander added.
Saputo expects the deal to complete in the second quarter of 2019.
Its Chair & Chief Executive Lino Saputo said: "Dairy Crest is an attractive platform for Saputo and fits well within our growth strategy. We believe 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.
"This recommended offer represents a compelling opportunity for Dairy Crest shareholders, providing immediate value certainty."
