Express Dairies seeks milk merger

12 November 1998

Express Dairies seeks milk merger

EXPRESS DAIRIES is looking for a merger partner to help drive down the costs of its milk distribution business.

The dairy processor believes there is too much supply in the sector. Neil Davidson, the chief executive, said it was important to do a “big merger” to take some of the capacity out of the market.

Express reported a 10.4% rise in pre-tax profits to £26.6 million for the half-year. Lower raw milk prices and new contracts from the large supermarkets helped the bottom line.

Dairy processors have benefited from the strength of Sterling, which has reduced the costs of raw milk. Mr Davidson confirmed that these costs could rise if the Pound continued to fall.

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• The Independent 12/11/98 page 25 (Investment)
  
• Financial Times 12/11/98 page 36
  
• The Guardian 12/11/98 page 25
  
• The Daily Telegraph 12/11/98 page 37, page 39 (City Diary)