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Arla Foods and Milk Link enter merger discussions

Milk Link and Arla Foods amba intend to merge.

25 May 2012

Milk Link and Arla Foods may realise benefits from hiring merger and acquisition advisors, as the two firms have announced they are to combine their operations.

The tie-up should result in the complete merger of co-operative Arla Foods amba and leading dairy farmer organisation Milk Link, satisfying the strategic priorities and overall goals of both groups.

If the transaction is completed, it should create the largest company in the UK's dairy market, with a combined turnover exceeding £2 billion and with more than three billion litres of milk processed every year.

"The merger will be good for our farmers, our customers and their consumers and ultimately, the British dairy industry," chief executive of Arla Foods UK Peter Lauritzen said.

It will result in a firm that has an established industry position in a range of products, such as speciality cheeses, butters, flavoured and fresh milks, Cheddar and cream.

During 2011, Milk Link posted a turnover of £550 million, with before tax profits of £15.1 million.

Posted by Ken Hayes

Source: Joined press release, May 22nd 

 

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