Müller UK & Ireland Group confirms today (6th November, 2014) that it has agreed to acquire the dairy operations of Dairy Crest Group plc.

The acquisition, which is subject to approval by the relevant competition authorities and the shareholders of Dairy Crest, 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.

Müller believes that combining 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.

The businesses have largely complementary footprints and the acquisition will provide an opportunity to achieve material cost savings and efficiency improvements.

Bringing the two dairy operations together will enhance the merged business’s ability to compete and will ensure that customers continue to receive quality products at low prices.

The combined business will also provide a platform for higher investment in production efficiencies which will unlock the potential for substantially higher levels of innovation, product development and exports of dairy products made in Britain, with milk from British dairy farms.

Heiner Kamps, Chief Executive Officer of Unternehmensgruppe Theo Müller said: "This acquisition underlines our ambition to further grow the Unternehmensgruppe Theo Müller in its core markets and it extends our position as an increasingly important competitor in the dairy sector.

"In tandem with this growth we are placing significant emphasis on becoming an employer of choice at what is an exciting time in our further development as an international fresh food company."

Ronald Kers, Chief Executive of Müller UK & Ireland Group said: "We aim to create a more competitive, sustainable, efficient and innovative dairy processor in the UK which will generate real benefits for customers, consumers, employees and suppliers. We look forward to working with the excellent team in Dairy Crest’s dairies operation.

"We are concerned that the dynamics of the UK fresh milk market are unsustainable for dairy processors in the mid to long term and this acquisition will allow us to reduce our costs, increase our efficiencies and invest in the future."