Wiseman Buys Milk Link Businesses

LONDON - Jun 6/06 - SNS -- Robert Wiseman Dairies PLC paid around GBP 5.5 million for the fresh liquid milk business of Milk Link Limited, comprising Peninsula Milk Processors Limited and Newlands Farm (Milk Link) Limited.

The final cost of the deal will be settled in cash subject to an assessment of the volume of milk transferring and net assets at completion. The acquisition is dependent upon obtaining confirmation that the Office of Fair Trading does not intend to refer the transaction to the Competition Commission.

Milk Link currently sells around 32 million liters per annum, mainly to symbol group retailers and neighborhood shops, from dairies in Okehampton, Devon and Pensilva, Cornwall.

As part of the transaction, Wiseman will enter into a Supply Contract with Milk Link for a certain proportion of its raw milk requirements in the South West of England. This will ensure that milk requirements for Wiseman's South West operation is met by dairy producers from the area.

Wiseman currently supplies around 1.4 billion liters and has 24% of the market in Great Britain. The Company views this as a strategic acquisition that will benefit the business and strengthen relationships with its customers.