Dairy Crest to acquire London Foodservice business from Arla Foods

The acquisition is expected to complete on 29th October 2005 following a consultation period with employees.

18/10/05 Dairy Crest announces that it will acquire the business and fixed assets of Arla's London Foodservice business, including the freehold site at Nine Elms, for a cash consideration of £4.0 million. The acquisition is expected to complete on 29th October 2005 following a consultation period with employees.

The acquisition is consistent with Dairy Crest's strategy to complete infill acquisitions for its household business and will result in one-off cash acquisition integration costs of around £3 million in the current financial year.