Canadian company Saputo has announced a £975 million takeover of Surrey-based dairy products manufacturer Dairy Crest.

Dairy Crest have their head offices in Leatherhead, Surrey, and employ around 1,100 people in the UK.

The company manufacturers several of the best-known dairy products in the UK, including Cathedral City cheddar and Clover margarine.

Saputo chairman and chief executive Lino Saputo Jr said: "Dairy Crest is an attractive platform for Saputo and fits well within our growth strategy.

"We believe that under Saputo ownership, Dairy Crest will be able to accelerate its long-term growth and business development potential and provide benefits to Dairy Crest's employees and stakeholders.

Under the terms of the deal, Dairy Crest investors will receive 620p per share in cash, an 11.7 per cent premium.

The Dairy Crest board is unanimously recommending the all cash offer.

Mr Saputo Jr said: "This recommended offer represents a compelling opportunity for Dairy Crest shareholders, providing immediate value certainty."

Shares in Dairy Crest jumped 12 per cent to 625p in morning trade following the announcement.