Dale Farm, the processing arm of Northern Irish co-op United Dairy Farmers, has bought the UK dairy operations of Italy's insolvent food giant Parmalat for an undisclosed sum.
In December, Parmalat revealed a multibillion dollar hole in the accounts of a Cayman Islands unit, forcing it to request bankruptcy protection.
In a statement, Dale Farm said it had acquired Parmalat's dairy processing activities at Kendal in northern England, which makes products under the Losely and Lakeland Maid brands.
The acquisition will extend the Northern Ireland group's portfolio of yoghurts, dessert and cottage cheese products, which "compete within the dairy sector's fastest-growing category", according to Dale Farm's group chief executive, Mr David Dobbin.
The firm plans to maintain employment at the plant, which has an annual turnover of around £30 million sterling (€44.5 million) and a staff of around 200.
The acquisition forms part of a plan to invest £20 million in its manufacturing operations, of which more than £12 million has already been committed, Dale Farm said.
United Dairy Farmers has a turnover of around £260 million, of which Dale Farm accounts for £135 million.
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