First Milk is selling its Glenfield Dairy business based in Fife, Scotland, to Graham’s The Family Dairy.
Glenfield Dairy supplies the retail and food service markets, producing soft cheeses and cream dairy products.
The sale follows a full strategic review by the board over the summer and would allow First Milk to focus on its core businesses in hard cheese and liquid brokering, said chief executive Mike Gallacher.
Glenfield was a good fit with Graham’s other dairy operations and the sale protected employment at the site, he said.
The purchase allows Graham’s to extend its product range to cottage cheese and quark, as well as creating potential for other new product development, said Robert Graham, managing director of Graham’s.