Dairy co-operative First Milk has acquired the businesses of Scotland’s Kingdom Cheese and Kingdom Dairies.
Together the two businesses are understood to have a turnover of about £30m.
Kate Allum, First Milk’s chief executive, said the move was part of the co-op’s ambition to diversify its product and customer base. Kingdom Dairies produces cottage and soft cheese for retailers, foodservice wholesalers and food manufacturers, while Kingdom Cheese cheddar mixes, blends and mozarella.
“The purchase strengthens our retail category presence and delivers a significant presence in the foodservice arena,” Miss Allum said.
“Ultimately, the key measure is that we firmly believe this move provides us with a platform to grow – not only turnover and profits, but also for the returns we can provide to our members.”