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Dairy Crest to sell Dairies to Müller UK & Ireland Group

Staff writer ▼ | November 7, 2014
Dairy Crest announced that it has agreed to sell the assets of its Dairies operations to Müller UK & Ireland Group for 80 million pounds payable in cash on completion.
Dairy Crest
80 million pounds   The fresh milk, cream and butter
The sale is conditional on the approval of the relevant competition authorities. This process is expected to take several months, during which time Dairy Crest will focus on continuing to provide high levels of service and delivery throughout the supply chain.

It is also conditional on the approval of Dairy Crest's shareholders and employee consultation.

The combination of Dairy Crest's Dairies operations with those of Müller Wiseman Dairies (the fresh milk, cream and butter business owned by Müller) will build on the progress Dairy Crest has already made in improving efficiency. It will help to create a more sustainable UK dairy sector by delivering economies of scale and cost efficiencies that will underpin investment in the industry.

This in turn should help the UK to compete more successfully in global markets, which is essential for British dairy farmers. Dairy Crest believes the transaction to be in the best interests of consumers, customers, dairy farmers, employees and Dairy Crest's shareholders. It will create a stronger business that protects long term employment and has the potential to help reduce costs and increase efficiency.

After completion Dairy Crest's focus will be on its profitable, predominantly branded, cheese and spreads operations. It will also 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.

Dairy Crest announce Revenue of 682.1m pounds and Interim dividend 2% higher.