Graham’s Dairies has bought Scottish Milk Dairies, a subsidiary of First Milk, for an undisclosed sum.

Robert Graham, managing director of Scotland’s largest independent, family-owned fresh liquid milk business, said the deal would boost turnover by £4.5m to over £30m.

“The acquisition includes a milk supply contract with First Milk and provides us with the extremely welcome opportunity to work more closely with the Scottish dairy farmers who make up the First Milk Business.”

Robert Wiseman Dairies was poised to buy Scottish Milk Dairies for a figure reported to be about £900,000.

However, the bid was referred to the Competition Commission by the Office of Fair Trading due to concerns over lack of competition in the Glasgow middle ground market.

This caused Wiseman to withdraw its offer saying the deal was not worth the cost of contesting the OFT’s decision.