Wiseman shakes hands on £80m deal for dairies The parent company of Müller Wiseman has strengthened its grip on the UK dairy market with an £80 million deal to buy some of the operations of Cathedral City maker Dairy Crest. The group, created in 2012 when Glasgow-based Robert Wiseman Dairies agreed to a £279.5 million takeover offer from Germany's Müller, is set to acquire four dairy sites and 72 depots, as well as the flavoured milk brand Frijj. The move, which is subject to competition clearance, will allow Dairy Crest to focus on its cheese and spread operations, which include the Clover and Country Life brands. National Farmers" Union dairy board chairman Rob Harrison said: "I see this as a positive step in building an increasingly sustainable dairy sector and there are synergies between Müller Wiseman's existing business and the planned acquisition." Müller UK & Ireland employs some 6,000 people across four businesses, with Müller Wiseman operating six dairies from Aberdeen to Somerset, as well as a fresh milk distribution network. The company buys milk from more than 1,200 British dairy farmers. The deal was announced as Surrey-based Dairy Crest reported a 95 per cent slide in half-year profits to £900,000, dragged down by volatile milk prices and the cost of plant closures. Revenues edged up 1 per cent to £682.1 million. Ronald Kers, chief executive of Müller UK & Ireland, said: "We aim to create a more competitive, sustainable, efficient and innovative dairy processor in the UK which will generate real benefits for customers, consumers, employees and suppliers. We look forward to working with the excellent team in Dairy Crest's dairies operation. We are concerned that the dynamics of the UK fresh milk market are unsustainable for dairy processors in the mid to long term and this acquisition will allow us to reduce our costs, increase our efficiencies and invest in the future. The sale includes factories in Chadwell Heath, Foston and Severnside as well as the Hanworth glass bottling site, where Dairy Crest is already consulting with employees about the site's future. Dairy Crest chief executive Mark Allen said: "Completing this transaction would be a positive development for Dairy Crest and for the UK dairy industry, creating efficiencies and economies of scale." Müller said the combination will lead to production efficiencies and unlock the potential for higher levels of innovation, product development and greater exports of dairy products made in Britain. Investec analyst Nicola Mallard said: "Dairy Crest's dairy business has always been the "poor relative" in the group, diluting margins and the quality of earnings, so the proposed sale is good news, in our view. It will dilute the quantity of profit, but improve the quality. However, she added: "The deal is dependent on clearance from the competition authorities, which may take some months to complete - and is not without risk."