Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Dairy Crest sells dairies operations to Müller in £80 million deal

The deal includes Dairy Crest’s dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth

Alex Lawson
Thursday 06 November 2014 11:14 GMT
Comments
(PA)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Dairy Crest has agreed to sell its dairies operations to Müller for £80 million after revealing a 95 per cent slump in first-half profit.

Dairy Crest said the sale, which is expected to take several months, will protect long-term employment and help reduce costs and increase efficiency.

The maker of Cathedral City cheese and Country Life butter, said profit before tax fell to £900,000 in the six months to September 30 from £19.7 million a year earlier, hurt by a loss in dairies business, which accounts for 70 per cent of its revenue. Revenue rose 1 per cent to £682.1 million.

The deal comprises the fresh liquid milk, flavoured milk including the FRijj brand, bulk and potted cream, bulk butter and milk powder businesses of Dairy Crest.

It includes Dairy Crest’s dairy facilities at Severnside, Chadwell Heath, Foston and Hanworth together with around 70 depots.

Dairy Crest said it would shut its Hanworth glass bottling dairy in west London and its cream potting facility in Somerset in September.

Müller UK, which is owned by Unternehmensgruppe Theo Müller, said combining its Müller Wiseman Dairies and Dairy Crest’s dairies operations will “benefit customers, consumers and employees of both businesses whilst offering supplying farmers greater opportunity and security”.

Müller chief Ronald Kers said: “We are concerned that the dynamics of the UK fresh milk market are

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in