Michelmores advises Freshways Dairy on merger with Medina Dairy

The Corporate team at Michelmores has successfully advised Freshways Dairy, the largest independent family-run dairy product supplier in the UK, on their merger with Medina Dairy.  The merger will establish a c.£400 million turnover sustainable and progressive dairy business that has come together to promote the best interests of their combined staff, customers and the British dairy farmers that supply them. The merger fulfils both dairies' strategic priorities and will support their joint goal of providing dairy farmers with a more sustainable future.

 The aim of the merger is to create a viable, long-term, fresh liquid milk business that will have the requisite scale and agility to compete with the two large players that dominate the dairy sector in the UK.

The Michelmores team provided advice and guidance on all legal and regulatory aspects of the merger, which is subject to regulatory approval. The team was led by Adam Corbin, a Partner in the Agriculture team, and assisted by Samantha Billingham (Corporate), Paul Beanlands (Property), and Anna Thompson (Finance).

The new business will have a combined turnover of c. £400 million, employ 1,000 staff and process in the region of 500 million litres of British Red Tractor farm assured milk per year.  A newly-formed board and management structure will be put in place to oversee the merger and integration of the two businesses.

Commenting on the merger Bali Nijjar, Managing Director of the Freshways group of companies, and Sheazad Hussain, Chief Executive of Medina Dairy, said:

“Throughout our discussions it has become increasingly apparent how complementary both companies are.  As such, through merging we will be able to harness these synergies to create a leaner, more agile and fit for purpose business.  A business that will benefit customers, consumers and suppliers and ultimately, we believe, will be well placed to grow and develop in a sustainable manner for the long-term.”

Richard Cobb, Senior Partner, and Head of Corporate at Michelmores said:

"We are delighted to have been involved with the strategic discussions around this highly important merger, which will help to boost the milk and dairy sector in the UK.  Freshways is a forward-looking business that has shown exceptional growth over the last 30 years – this merger will leave them even better placed in the dairy industry, which is a dynamic and fast-moving market."

Mark Gibson, Partner at DWF, commented:

"We are delighted to have advised Medina Dairy on this significant merger that will see the new business become one of the top 10 UK dairy processors and greatly benefit both suppliers and customers through the creation of a progressive and sustainable business."