National Bank Financial Markets and BMO Capital Markets acted as co-lead arrangers and joint bookrunners for a new term loan supporting Toronto-based Saputo’s acquisition of Dairy Quest, a UK-based company.
Saputo acquired the entire issued ordinary share capital of Dairy Crest for £6.20 ($8.11) per ordinary share valuing Dairy Crest’s share capital at approximately £975 million (approximately $1.275 billion). The purchase price, payable in cash, was financed through funds drawn on a new bank term loan facility. The transaction was implemented by way of a court-sanctioned scheme of arrangement under the UK Companies Act 2006.
Dairy Crest manufactures and markets cheese, butters, spreads and oils under leading British brands, such as Cathedral City, Clover, Country Life and Frylight, and value-added dairy ingredients. Dairy Crest employs approximately 1,100 people in seven locations across the UK.
This acquisition enables Saputo to expand its international presence and to enter the UK market by acquiring and investing in a well-established and successful industry player with a solid asset base and an experienced management team.
Lazard acted as financial advisor to Saputo, and Freshfields Bruckhaus Deringer and Stikeman Elliott acted as its legal counsel.
