Canadian dairy company Saputo Inc. announced Feb. 22 that it has reached an agreement with Dairy Crest Group on the terms of a cash acquisition by which Saputo will acquire the entire issued for £975 million (approximately $1.27 million).

Saputo said it is currently intended that the transaction will be implemented by way of a court-sanctioned arrangement under the United Kingdom Companies Act 2006. The transaction is subject to approval by the shareholders of Dairy Crest, the court's sanction of the scheme of arrangement as well as other conditions customary for this type of transaction. Subject to the foregoing, the transaction is expected to close in the second quarter of 2019.

Headquartered in the U.K., Dairy Crest is a large dairy company that 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 U.K.

For the fiscal year ended March 31, 2018, Dairy Crest had revenues of approximately £456.8 million (approximately $597.36 million) and profit after tax for the period of approximately £149.5 million ($195.5 million). For the six months ended Sept. 30, 2018, Dairy Crest had revenues of approximately £224.9 million ($294.1 million) and profit after tax for the period of approximately £14.5 million ($18.96 million).

Saputo said the transaction would enable it to expand its international presence and enter the U.K. market by acquiring and investing in a well-established and successful industry player with a solid asset base and an experienced management team. Dairy Crest is an attractive platform that fits with Saputo's growth strategy, the company added.