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Dairy Crest to reduce stake in Wexford Creamery to 30%

UK headquartered food producer Dairy Crest (LSE: DCG) is in advanced discussions with the joint owners of its Wexford Creamery business to sell 50% of the subsidiary for €9 million. As a result of the deal, privately owned joint venture partner Wexford Milk Producers (WMP) will own 70% of the Irish cheddar manufacturing business with Dairy Crest retaining a 30% shareholding.

“The strategy of Dairy Crest's Foods Division is to increasingly focus on a small number of key brands and the transaction is another step in this direction. We will continue to work with WMP for the benefit of the Creamery", Dairy Crest Foods MD, Martyn Wilks said.

The company said the proposed transaction allows it to concentrate on its key brands and facilitates the recent trend for dairy farmers to own more of the milk processing supply chain. Dairy Crest will carry on providing packing and distribution services to the Wexford Creamery business and it will continue to sell Wexford branded cheese in the UK.

Disclosure: The author holds no positions in the company