French dairy manufacturer Lactalis has announced the acquisition of Saputo’s UK Dairy Division, which has a portfolio of popular brands, including Cathedral City and Clover.

This move will allow Lactalis UK to expand its offering with leading products such as Davidstow cheddar cheeses, Wensleydale Creamery cheeses, Country Life butter, and Utterly Butterly spreads.

According to the business, this deal will push Lactalis towards becoming a leading supplier of cheddar and butter spreads throughout the UK.

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

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

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“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.”

Cathedral City has a strong presence in Britain and has established itself as one of the UK’s most popular cheddar brands.

The brand is sold through specialist cheese retailers, supermarkets and foodservice outlets primarily in the UK, which accounts for 94 per cent of sales, while 6 per cent is exported to Europe.

The business currently 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).

It has recently reported successful results, having generated revenues of approximately £684m in its latest financial year.