International law firm Eversheds has advised Dairy Crest, the UK’s leading dairy foods company, on the proposed sale of its French spreads business St Hubert to Montagu private equity in a £344 million deal.
The proposed sale follows Dairy Crest’s 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 is a leading French producer of standard, low fat and innovative spreads. It was purchased in January 2007 for €370 million (approximately £248 million). Since its acquisition Dairy Crest has increased the revenue and EBIT for St Hubert by 35% and 45%, respectively.
The Eversheds team was led by Partner Aleen Gulvanessian, assisted by Principal Associates Rachel Broquard in the London office. Partner Antoine Martin and Senior Associate Mathieu Taupin advised from the firm’s Paris office.
Aleen commented:
“We have an established relationship with Dairy Crest, an extremely valued client, who we have advised on a number of strategic transactions over the years. We look forward to continuing our partnership with them as they continue to optimise their position in the market.”
Mark Allen, Chief Executive of Dairy Crest, said:
“We are delighted to have agreed in principle the proposed disposal of St Hubert, at a price which reflects the excellent progress the business has made under our ownership. Over the coming months, with a strengthened balance sheet, we will be able to consider a wide range of opportunities.”
