UK - Dairy co-operative First Milk has announced that it has agreed to sell its Glenfield Dairy business based in Fife, Scotland to Graham's the Family Dairy ("Grahams").
The move is part of the company's efforts to turnaround the business following severe losses in 2014. First Milk also announced this week that it was back into profit in the first six months of this financial year.
Mike Gallacher, Chief Executive of First Milk said: "The sale of Glenfield Dairy follows a full strategic review by the Board over the summer. It will allow us to focus even more closely on our core businesses in hard cheese and liquid brokering.
"This is already starting to drive improvement with the business moving into a positive operating profit at mid-year, consistent with the phasing of our turnaround plan.
"We are confident that this focus will deliver improved milk prices and a more sustainable business model for our farmer shareholders."
Robert Graham, Managing Director of Graham's The Family Dairy, commented: "This is an exciting acquisition for us as it allows us to extend our product range for customers and consumers even further, with the addition of cottage cheese and quark. In addition, this deal presents great potential to explore further new product development going forward.
"As a business, our core values run through the very heart of our business - family, farming and high quality products that taste great. We plan to bring these principles to Glenfield as they become part of the Graham's family. We're delighted to be expanding the business on home turf and will continue to be mindful of future growth opportunities."
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