German dairy giant Unternehmensgruppe Theo Müller has acquired the UK operations of Austrian rival Nom, as it looks to expand its presence in the country’s private label yoghurt market.

Under the agreement, Müller has acquired Nom Dairy’s yoghurt production facility in Telford, Shropshire – securing employment at the site – which has a turnover of GBP43m (US$67.1m) per annum.

Müller CEO Heiner Kamps said: “This acquisition underlines our commitment to growing our presence in the UK, which along with Germany and the US, is a core market for Müller.

“We believe that there are strong opportunities in the UK private label yoghurt sector and the Telford facility will help us to realise our plans to provide customers with great products in this important market.”

While Müller UK & Ireland Group CEO Ronald Kers said: “We want to be the biggest and best dairy company in the UK and by acquiring this excellent facility we can increase the range of private label yoghurt products made with milk from British farms, which in turn can reduce the UK’s dependence on imported dairy products.

Müller said the deal builds on its recent acquisition of fresh milk processor Robert Wiseman Dairies and a chilled desserts facility at Minsterley, Shropshire.

The group is also investing GBP17m in a butter manufacturing facility in Market Drayton, Shropshire, with production expected to start in the autumn.