6 November 2014 – disposal
The company has agreed to sell the assets of its Dairies operations to Müller UK & Ireland Group for a consideration of £80m, payable in cash on completion. Following the sale Dairy Crest’s focus will be on its cheese and spreads operations, which are predominantly branded. It also aims to grow its revenue and profits by continuing to develop whey-based products, such as demineralised whey powder and galacto-oligosaccharide, for the growing global infant formula market. The market has reacted well to the news. Dairies represents the bulk of revenue but the other parts of the business have the potential for far better margins. For the time being the shares remain a BUY.