Deal further strengthens its position as a leading force in the dairy sector
Milk Link, the farmer owned dairy co-operative with a substantial membership in the South West, today further strengthened its position as the UK's leading integrated dairy business through a strategic investment to acquire control of Peninsula Milk Processors Limited ("Peninsula") - the fresh liquid milk processor based in Okehampton, Devon, for an undisclosed sum. The deal is subject to certain resolutions being passed at an Extraordinary General Meeting of Peninsula.
The facility produces fresh milk, and fresh clotted creams for major retail, catering and manufacturing customers. The deal will complement the recent acquisition by Milk Link of Newlands Farm Limited, another liquid milk processor, based in Liskeard, Cornwall announced in December. Milk Link will build upon their strong customer base and believes that retailers will see considerable benefits from partnering with an integrated farmer owned dairy business.
Regional benefits of the Peninsula acquisition include Milk Link maintaining its core operation in its South West membership heartland and a strengthened local economy through increased processing capacity of its member's milk. The acquisition of Peninsula will alone secure demand for 30-50 million litres per annum of Milk Link output with the additional benefit of very low transport costs.
Both acquisitions are strategically important investments for Milk Link as they offer the opportunity to develop regional branded opportunities in consumer products. They will also complement Milk Link's existing liquid
milk business based in Scotland, Essex and Crediton, in Devon.
Commenting on the acquisitions Barry Nicholls, Milk Link Chief Executive said:
"Our objective is to deliver long-term financial security to our members and the acquisition of Peninsula is the next step in achieving our strategy of becoming the UK's leading farmer owned integrated dairy business. The Peninsula facility offers us a new, well invested asset base right in our membership heartland and has been described by DEFRA as an "example of best practice under the Objective 5B programme". By increasing our processing capacity in the South West, we are able to reduce transportation costs while providing a platform for regionally branded products."
