Private equity firms are set to be prevalent in the first round of bidding, with firms such as Cinven, Montagu and PAI Partners all linked to a takeover of the segment.
Core market reinvestment
The three St Hubert brand spreads - St Hubert, St Hubert Demi and St Hubert Omega 3 - are manufactured in France for distribution throughout France and Italy – accounting for 36% of the French spreads market and 60% in Italy.
When it first acquired St Hubert back in 2007, Dairy Crest intention was to add to the business segment through a series of acquisitions on the European mainland.
However, the firm has since turns its intentions to selling the segment, with proceeds allocated to paying off debt and reinvesting in its core market, the UK.
Dairy Crest 'concerns'
Concerns have been recently been raised about Dairy Crest’s position in the UK dairy sector, with fears that the growing presence of Arla and Muller in the UK market could signal its “demise.”
Arla Foods announced earlier this year that it had entered into an agreement which will see it merge with UK cooperative, Milk Link.
The firm’s dairy business has suffered significantly at the hands of retailer pricing and the increasing UK presence of Muller and Arla, leaving it as only the third biggest liquid milk player.
