Dairy Crest has completed a $118 million (£80 million) sale of all of its dairy operations to Müller, a German company.
The sale includes all of Dairy Crest’s UK dairies and 3,000 milk floats closed on Boxing Day, according to The Telegraph.
“This is a transformational moment for Dairy Crest and the wider dairy industry and helps bring much needed stability to the UK dairy sector,” said Mark Allen, Dairy Crest CEO. “Dairy Crest can now focus on growth, through both our branded cheese and spreads operations and new revenue streams from manufacturing products for the fast-growing global infant formula market.”
As part of this acquisition, Müller will create a new organization called Müller Milk & Ingredients, and will also rename its yogurt and chilled desserts business as Müller Yogurt & Desserts.
“With this transaction now concluded we have the opportunity, together with our colleagues, customers, farmers, and suppliers, to build on our progress in the UK and create an exciting new future for our dairy business,” said Müller CEO Ronald Kers.
According to The Telegraph, Dairy Crest felt compelled to abandon its dairy business after it had contributed over $211 million (£143 million) in losses over the past four years. Allen also mentioned that the declining milk prices meant that milk production would be better off in the hands of privately owned company, the publication reports.
With the deal now complete, Müller will operate four dairies in Severnside near Bristol, Foston in Derbyshire, Hanworth in West London, and Chadwell Heath in East London. The company will also be responsible for delivering pints of milk across most of the country.
“I would like to thank everyone who has contributed to Dairy Crest’s Dairies business over the years,” Allen continued. “Together we have built a business of which we can be proud and which has an exciting future under Müller’s ownership.”
Müller is most popularly known for its line of yogurts and desserts, as well as its milk and ingredients products. Since 1994, the company has invested over $740 million (£500 million) to expand its dairy and distribution network.