Dairy Crest favourite to acquire Midland co-op

Dairy Crest is expected to acquire the dairy operations of Midlands Co-op by the end of the month.

Midlands said it had ‘reluctantly decided to sell is set to increase its dairy business’, mainly because its primary processing plant in Birmingham dating back to the 1900s, needs major capital investment to keep it fully operational. The business employs around 800 people in England and Scotland.

The deal will follow Dairy Crest’s acquisition last week of Starcross Foods, with a 100 million litres capacity dairy in Foston, Derbyshire. It also successfully won the extended contract to supply Morrison supermarkets, beating off rival Wiseman.