Müller Dairy has acquired Nom Dairy UK for an undisclosed amount, as part of an ambitious plan to become a major own-label yoghurt supplier in the UK.
The move follows persistent rumours that Nom Dairy UK was up for sale after failing to make sufficient headway in the UK yoghurt market after the opening of its £40m site in Telford in 2009.
The Telford site will now be used by Müller to kick-start its foray into own-label yoghurt.
“We believe that there are strong opportunities in the UK private-label yogurt sector, and the Telford facility will help us to realise our plans to provide customers with great products in this important market,” said Heiner Kamps, CEO of Unternehmensgruppe Theo Müller, the parent company of Müller Dairy.
“We believe that there are strong opportunities in the UK private-label yogurt sector, and the Telford facility will help us to realise our plans to provide customers with great products in this important market”
The acquisition underlined Müller’s commitment to growing its presence in the UK, which – along with Germany and the US – was a core market for Müller, he added.
Müller wanted to be the biggest and best dairy company in the UK and by acquiring the facility, it could increase the range of private-label yogurt products made with milk from British farms, which in turn could reduce the UK’s dependence on imported dairy products, added Ronald Kers, CEO of Müller UK & Ireland Group.
“We are ambitious for the future and we very much look forward to working with the team at Telford and our customers to realise the significant potential of this facility,” he said.
The Nom acquisition comes after Müller bought Robert Wiseman Dairies and a chilled desserts facility at Minsterley, Shropshire, from Greencore last year.
Rumours have been circulating for some time that Nom UK’s Austrian parent, Nöm, had put the business up for sale. Last December, reports in Austria suggested a UK exit was imminent, but this was dismissed as speculation by senior management.
Prior to the acquisition, Nom Dairy UK was 85% owned by Austria’s Raiffeisen Holding, with 15% held by Austrian yoghurt maker Nöm AG.
In a statement, Raiffeisen Holding said it had managed to find a “fitting” buyer for Nom Dairy UK in Müller. “This will allow for synergies to be exploited in the future,” added Raiffeisen head Klaus Buchleitner. “It also creates clarity for employees.” Müller added the acquisition would “secure employment” at Nom Dairy UK.
According to Raiffeisen, Nom Dairy UK currently employs 155 staff at its 24-acre site at Donnington Wood, Telford. It has a turnover of about £43m per annum.