Company Review: Müller UK - A guide to your milk buyer 2012

Published 23 February 12

The updated review on Müller UK provides a detailed summary of the company's operations, performance and growth strategy. The review is part of a series of reports which provide information to aid in understanding the business environment that your milk buyer operates in to help you make better busines descisions.

Further to the preparation of the Company Review on it was announced that Müller agreed to purchase Robert Wiseman Dairies for £279.5m in cash.

According to the offer document*(available at www.muellergroup.com and www.wiseman-dairies.co.uk), Müller will maintain Wiseman's headquarters in East Kilbride and that the management team will continue to lead the Wiseman business alongside Müller. There are no indications that Müller intend to make any immediate or major changes to the Wiseman business in terms of asset use or location of operations, although a review of the business may identify future operational changes.

The sale provides Müller with access to the liquid milk market, an area which has previously not been involved within the UK. Based on data from the 2010/11 milk year, the company will now handle over 2 billion litres of milk per annum (based on 2010/11 data), representing around 16% of UK total milk production.

Müller state that the move will allow it to enter a new market segment in the UK and form a larger business that can offer a range of products to customers across Europe. While processors in the liquid milk market are finding it difficult to maintain margins due to the difficulty of passing on increasing input costs, market commentators believe, that as a private company, Müller will be able to take a longer-term view of market opportunities.

*Access to the micro-site may be restricted under the Securities laws of certain jurisdictions.