Dairy Crest has signed the Sale and Purchase Agreement for the sale of St Hubert for 430m euros, following the completion of the consultation process with the French Works Council.
The sale is now reliant on approval from Dairy Crest shareholders and clearance from the French Anti-Trust Authority.
As previously announced, Montagu Private Equity is offering a consideration of €430m (£344m) in cash for St Hubert, which Dairy Crest purchased in 2007 for €370m at a time when it planned to make further acquisitions in Continental Europe. Given that this strategy was unsuccessful, Dairy Crest believe the sale offers the best option for shareholders.
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Low fat spreads business St Hubert is the second largest participant with a market share of approximately 39% by value as at March 2012.
If the sale goes ahead, the proceeds will initially be used to reduce net debt.
The share price rose 0.61% to 329.30p by 10:36.
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