Muller has announced it has reached an agreement to acquire Yew Tree Dairy, a family-owned dairy company based in West Lancashire.
With the acquisition, Muller says it will use Yew Tree Dairy’s production capabilities for milk powder to grow its export business.
The dairy processor also says the move will "drive supply chain resilience and secure a positive future for the British dairy industry".
Yew Tree Dairy, which is based in in Skelmersdale, West Lancashire, is a family-owned dairy company producing fresh milk and cream.
Following significant investment in recent years, the business now also specialises in milk powder production.
Completion of the deal is expected later this year subject to approval from the Competition and Markets Authority (CMA).
Once the deal is completed, Muller says it plans to significantly invest in the capacity and capabilities of the Skelmersdale milk drying site, offering supplying farmers "enhanced opportunities and long-term security".
Rob Hutchison, CEO at Muller Milk & Ingredients said this investment in British dairy "underlines our ambition to grow Muller and build a better future for the sector."
He added: “Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with its customers and supplying farms.
"When combined with our well-invested and resilient network, I am very confident that these two family-owned businesses will complement each other really well.
“This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience.”
Carl Woodcock, from Yew Tree Dairy, said the family felt the time was right to explore new opportunities whilst retaining their farming roots.
“We as a family are proud of the dairy business we have built and are looking forward to seeing the progression and development by Muller of the Skelmersdale operation.
“We would like to thank all who have been involved in the Yew Tree Dairy business over the years. Our success is in no small part due to our dedicated staff, farmers and customers that have been part of our journey."
He added: “After meeting with the Muller family, we feel confident that this is the right decision for the business to be part of a larger organisation for the next phase of growth.
“The key for us was to find a buyer that not only shared our values but had an exciting vision for the future of the great British dairy industry."
