The merger, which is subject to regulatory approval, will establish a sustainable and progressive dairy business, with circa £400m turnover. The merger fulfils both dairies strategic priorities and will support their joint goal of providing dairy farmers with a more sustainable future.
The aim of the merger is to create a viable, long term, fresh liquid milk business that will have the requisite scale and agility to compete with the two large players which dominate the dairy sector in the UK.
The new business will have a combined turnover of c. £400 million, and employ 1,000 staff as well as process approximately 500 million litres of British Red Tractor farm assured milk per year. A newly-formed Board and management structure will be put in place to oversee the merger and integration of the two businesses.
The Michelmores team advised Freshways Dairy on all legal and regulatory aspects of the merger. The Michelmores team was led by Adam Corbin, a Partner in the Agriculture team, and assisted by Sam Billingham (Corporate), Paul Beanlands (Property), and Anna Thompson (Finance).
Mark Gibson, Partner at DWF, commented "We are delighted to have advised Medina Dairy on this significant merger that will see the new business become one of the top 10 UK dairy processors and greatly benefit both suppliers and customers through the creation of a progressive and sustainable business."
Richard Cobb, Senior Partner of Michelmores and Head of Corporate, said "We are delighted to have been involved with the strategic discussions around this highly important merger, which will help to boost the milk and dairy sector in the UK. Freshways is a forward-looking business that has shown exceptional growth over the last 30 years – this merger will leave them even more well-placed in the diary industry, which is a dynamic and fast moving market."