Dairy Crest has confirmed that it is in talks with Medina Dairy over the sale of five “main depots” and 11 “satellite depots”.

The depots are located in Lancashire and Yorkshire and the company has begun a consultation process with affected employees and trade unions.

Commenting on the proposed transaction, managing director of the Dairy Crest’s Household division, Mike Sheldon said that it was “in line” with the company’s strategy to “reduce our overall cost base”.

The sale would enable Dairy Crest to “concentrate upon the long-term future of our business”, Sheldon said.

“Following the sale, MDL will serve the bottled milk buyers and local wholesale customers previously undertaken by the depots being transferred and it will distribute milk and products to national foodservice customers on behalf of Dairy Crest.”

A spokesperson for the company declined to comment on the financial details of the deal.