Express and Milk Link form alliance - Company News - Brief Article

Eurofood, July 18, 2002

UK-based dairy firm Express Dairies has conditionally agreed to enter into a strategic alliance with compatriot dairy group Milk Link.

The strategic alliance between Express and the major farmers' co-operative in Southern England, Milk Link, was described by Express as a major strategic development, and in line with its philosophy of developing mutually beneficial partnerships with producers.

It will see Express working closely with Milk Link in a number of areas, including the development of a new joint venture for producing and selling added value chilled packaged dairy products, and co-operation in milk and cream supply and milk balancing.

Express has also conditionally agreed to sell its UHT business and Frome Creamery to Milk Link, including its major milk drying facility. The sale of the UHT unit is being sold for 33.1m [pounds sterling] (51.5m [euro]) comprising 32.2m [pounds sterling] cash and 0.9m [pounds sterling] of assumed debt.

Furthermore, 2.6m [pounds sterling] will immediately be invested by Express into the new joint venture created by the two groups.

Sir David Naish, chairman of Express, said, "Our initiatives with EMP and Milk Link are major steps forward for the dairy industry, which we hope will establish a new model for integration between producers and processors."