Muller UK buys rival Dairy Crest’s dairy operations for £80m

SHREWSBURY-based dairy products giant Muller UK & Ireland has bought the dairy operations of southern rival Dairy Crest for £80m.

The sale is conditional on the approval of the relevant competition authorities. This process is expected to take several months.

Surrey-based Dairy Crest’s brands include Cathedral City, the nation’s favourite cheese brand, Davidstow and Country Life and Clover.
 
Dairy Crest says that once the deal is complete it will focus on its profitable, predominantly branded, cheese and spreads operations. It will also aim to grow its revenue and profits by continuing to develop whey-based products, such as demineralised whey powder and galacto-oligosaccharide, for the fast growing global infant formula market. 
 
The firm said that combining the two businesses will build on the progress that it has already achieved.  It suggests it will also strengthen the wider UK dairy sector bringing much needed security for Britain’s dairy farmers. 
 
Dairy Crest’s dairies operations process and deliver around 1.3bn litres of British milk per annum to major retailers,

Following the deal’s completion, the two companies will also enter into a supply agreement whereby Müller Wiseman Dairies will sell bulk butter to Dairy Crest for five years. 
 
Dairy Crest will retain manufacturing sites including one in Nuneaton.

Mark Allen, chief executive of Dairy Crest, said: “Dairy Crest is very proud of the dairy business it has built and we are delighted that it will be combined with Müller Wiseman Dairies’ equally well-established operation. 

“This proposed sale is a great opportunity for our two companies, our farmers, our staff, our customers and consumers.”