Dairy Crest in multimillion pound share sale
Surrey based Dairy Crest have today announced that they have received a binding offer from Montagu Private Equity SAS of £344 million for their share capital of St Hubert.
In March this year, Dairy Crest announced that they were carrying out a strategic review of St Huthbert. During the review, it was decided that the company would pursue a divestment.
The company who are better known for their brands including Cathedral City, Clover and Country Life Milk acquired St Hubert in 2007 for approximately £248 million. Dairy Crest has increased St Herbet’s revenue by 35%.
At the time of the acquisition, Dairy Crest had plans to make acquisitions in continental Europe but has since decided that there may be a greater value generated for its share holders through the disposal of St Hubert.
St Hubert is a French producer of low fat spreads and, is the second largest participant in the French spread markets with a market share of approximately 39% as assessed in March 2012.
Over the last financial year, St Hubert generated EBITDA of around £41.53 million.
If the transaction is agreed and completed, the proceeds will be used to reduce net debt. Dairy Crest have stated that they will remain a broadly based dairy business focused on the UK.
This was posted in Bdaily's Members' News section by Francesca Dent .
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