DAIRY CREST TAKES OVER PROMOVITA IN £6M DEAL

DAIRY CREST TAKES OVER PROMOVITA IN £6M DEAL

Dairy Crest, the Cathedral City cheese and Country Life butter maker, has acquired the outstanding 50 per cent share of Promovita Ingredients from Crewe-headquartered Fayrefield Foods for a cash sum of £6m.

Promovita was established in 2014 as a 50/50 joint venture between Dairy Crest and Fayrefield Foods to develop and produce Galacto-Oligosaccharide (GOS), a prebiotic for use in infant formula.

Having invested in the manufacturing capability at Davidstow in Cornwall and "successfully produced" GOS samples, Dairy Crest said full ownership of Promovita is in its and shareholders' best interests. It allows Dairy Crest sole control over the development of the GOS business and to fully benefit from the value that this business generates.

Dairy Crest chief executive Mark Allen said: "This is a further important step in the evolution of our added-value ingredients business.

"We remain on track to begin commercial production of GOS in early 2016 and this acquisition gives us full control over the development of this exciting business."

News Archive


Share this article on social media: