Milk Link, the farmer owned dairy co-operative strengthened its position as the UK's leading integrated dairy business through the strategic acquisition of the fresh milk processor Newlands Farm Limited.
The 100 per cent acquisition, of Newlands Farm, based in Liskeard, Cornwall and producer of 'The Cornish Dairy' brand sold through Tesco stores in the South West, was for an undisclosed sum.
The acquisition of Newlands Farm is a strategically important investment for Milk Link as it provides the opportunity to develop branded opportunities in consumer products. It also complements Milk Link's existing liquid milk business based in Scotland, Essex and Crediton, in Devon.
Regional benefits of the acquisition include Milk Link maintaining its core operation in its South West membership heartland, ensuring job security and a strengthened local economy through increased processing capacity of its member's milk. Retailers will also benefit from partnering a transparent integrated dairy business.
Commenting on the acquisition Barry Nicholls, Milk Link Chief Executive said:
"Our objective is to deliver long-term financial security to our members and the acquisition of Newlands Farm further establishes Milk Link as the UK's leading farmer owned integrated dairy business. In addition, by increasing our processing capacity in the South West, we are able to keep even more milk in our heartland, reducing transportation costs while providing a platform for regionally branded products."
Under Milk Link's ownership, Newlands Farm will be run as a stand-alone business managed by the existing management, with the continued involvement of David and Andrew Morris, founders of the business.
David Morris founder of Newlands Farm commented:
"It was very important to us that, having taken the decision to accept an offer to purchase the Newlands Farm business, the best interests of our employees and the customers that have been loyal to us over the years were taken into account. We believe that through the acquisition by Milk Link this has been ensured and we are confident that the business and its brands, including the Cornish Dairy, will continue to go from strength to strength".
The Newlands Farm deal complements Milk Link's major fresh dairy products joint venture with Arla Foods - Staplemead Dairy Products Ltd. The joint venture based at Milk Link's major production facility in Staplemead, Somerset develops, produces and markets innovative products including extended shelf life flavoured milk drinks and custards and fresh potted cream.
