The UK’s Dairy Crest has completed the acquisition of Express Dairies from Arla Foods UK.

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The deal, announced in July, for GBP33 million, includes the Express depot operations business and Liverpool and Nottingham dairies.


The acquisition creates the UK’s market leading doorstep and middle ground business, with approximately 2m existing customers and coverage across England and Wales.


The consideration includes a cash payment of GBP32.8m, which will be financed out of existing bank facilities, Dairy Crest said


The UK dairy company indicated that it saw significant synergies generating cost savings that are anticipated to peak at GBP9m in FY 2008/9.

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Dairy Crest said that performance improvement measures would arise from the use of best practice from both companies’ existing operations. The company also identified cost savings associated with the integration of administration and depot overheads, including a review of both head offices.

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