Dairy Crest has agreed to buy the St Ivel spreads business from the Uniq for £86.5m in cash.

Dairy Crest will integrate St Ivel spreads, with the Utterly Butterly and Vitalite brands, into its existing spreads business which includes the Clover dairy spread brand.

However, shares in Dairy Crest, which also makes Cathedral City cheese, fell 11% to 367.50p, on the news that the group expects first half operating profits to September 30, to be slightly lower than last year’s figure of £43.5m