UK-based Dairy Crest has completed the divestment of its French branded spreads business St Hubert to Montagu Private Equity in an all-cash deal of EUR430m.
In July 2012,Dairy Crest entered into an agreement to divest its French branded spreads business St Hubert,as part of a plan to strengthen its core UK dairy operations.
Following this,the company received approval from the shareholders and also received clearance for the proposed disposal from the French Anti-Trust Authority(Autoritéde la Concurrence)..
With the divestment,Dairy Crest plans to reduce its net debt,which stood at £336m on 31 March 2012,and focus on UK dairy operations by developing its portfolio of brands such as Cathedral City,Country Life,Clover and Frijj.It also plans to make strategic acquisitions of branded dairy businesses in the UK.
Dairy Crest acquired St Hubert from Uniq in January 2007 for€370m,and since the acquisition,the revenue and EBIT of the spreads business rose by 35%and 45%,respectively.
In March 2012,Dairy Crest initiated a strategic review of St Hubert,during which a range of options were assessed.After receiving interest from a number of potential purchasers,the company decided to divest the business.
