Dairy Crest to Sell Cheese Operations to First Milk
Posted on: Wednesday, 27 September 2006, 06:00 CDT
Dairy Crest, the maker of the Clover and Country Life brands, is to sell the majority of its retailer brand cheese operations to First Milk for GBP61.9 million.
The proposed sale by the UK dairy group includes the cheddar creameries at Haverfordwest and Aspatria, as well as the Group's pre-packing and whey processing facilities at Maelor.
The move by Dairy Crest is consistent with the company strategy of focusing on building a branded and added value foods business and also with the industry trend for greater ownership of such assets by milk producers.
Dairy Crest will focus its future cheese activities on accelerating the development of its branded and added value products that include Cathedral City, the UK's biggest cheddar brand, Davidstow, Country Life and Wexford.
The proposed sale is conditional on the approval of First Milk's members and is expected to be completed on October 14, 2006 following a consultation process with affected employees.
In the year ended March 31, 2006 Dairy Crest made an estimated operating profit of GBP3.4 million on sales of GBP194.2 million while in the current financial year, the business's performance is being impacted by generally lower industry cheese prices.
Source: Datamonitor
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