Muller UK & Ireland Group has announced that it has agreed to acquire the dairy operations of Dairy Crest Group plc for £80 million.
The acquisition, which is subject to approval by the relevant competition authorities and the shareholders of Dairy Crest, comprises the fresh liquid milk, flavoured milk including the FRijj brand, bulk and potted cream, bulk butter and milk powder businesses of Dairy Crest.
The deal, which was confirmed this week, includes Dairy Crest's dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth together with around 70 depots.
The Muller UK & Ireland Group currently has around 1,200 dairy farmers supplying it, and is confident that it will "sign up" the 700 or so producers currently supplying that part of the Dairy Crest operation that it is acquiring.
Ronald Kers, chief executive of Muller UK & Ireland Group, said: "We are concerned that the dynamics of the UK fresh milk market are unsustainable for dairy processors in the mid to long term and this acquisition will allow us to reduce our costs, increase our efficiencies and invest in the future."
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