Dairy Crest (LON:DCG) has been bought by Canadian company Saputo, in a deal worth £975 million.

Dairy Crest, which owns brands such as Cathedral City Cheddar and Country Life butter.

The company have recommended that shareholders accept the deal, which values the company at almost £1 billion.

Saputo, which is based in Montreal, sells dairy products in more than 40 countries. In Canada it is the largest dairy processing producer, whilst in the U.S it is among one of the top three, owning brands such as Cracker Barrel.

Saputo chairman and chief executive Lino Saputo Jr said: “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.”

Commenting on the proposed takeover, Stephen Alexander, Chairman of Dairy Crest, added:

“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. 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. The businesses have strong shared values and the board is confident that Saputo’s plans to invest in and grow the Dairy Crest business mean the proposed transaction is positive for all its stakeholders.

Whilst the company assured said “virtually” all its UK jobs are safe, Unite Union said it would be pushing for an “urgent meeting” with Saputo to secure the future of its 1,100 employees.

Today we have announced that our Board is unanimously recommending an all-cash offer by Saputo to acquire Dairy Crest https://t.co/JiPK9bTZE9

— dairycrest (@dairycrest) February 22, 2019

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