Glanbia has purchased the CMP-branded liquid milk, cream and juice business from fellow Irish dairy supplier Dairygold. The deal, worth E10.5m, includes CMP’s sales and distribution operations, but not the related production and chill facility.
The two companies have also agreed to enter into a contract manufacturing arrangement in which Glanbia will produce Dairygold-branded butter at Ballyragget, while Dairygold will produce some Glanbia products in its Mitchelstown plants.
Glanbia group MD John Moloney said: “The CMP brands will further strengthen Glanbia Consumer Foods’ customer offering as one of Ireland's leading suppliers of chilled foods and beverages to the retail and foodservice sectors.”
Dairygold chief executive Jerry Henchy said: “We have developed a pragmatic solution where we will be happy to co-operate with neighbours where appropriate to share facilities.”
The deal is subject to approval by the Irish Competition Authority.