Dairy Crest has received a binding offer from Montagu Private Equity SAS regarding the proposed disposal of the entire issued share capital of St Hubert for a consideration of €430m.
The Transaction follows Dairy Crest's announcement on 9 March of a strategic review of St Hubert. During the review a range of options were considered but as a result of substantial interest from a number of potential purchasers it was decided to pursue a divestment.
St Hubert was purchased in January 2007 for €370m. Since its acquisition Dairy Crest has increased the revenue and EBIT for St Hubert by 35% and 45%, respectively.
St Hubert has been a successful part of the Dairy Crest group and has consistently increased its market share and profitability.
However, Dairy Crest has been unable to make additional synergistic acquisitions in Continental Europe as it envisaged at the time of the acquisition and it believes that greater value may be generated for shareholders through the proposed disposal of St Hubert.
St Hubert is a French producer of standard, low fat and innovative spreads. In the overall French spreads market.
Source: Dairy Crest