The transaction, which sees Arla Foods Limited acquire Yeo Valley subsidiary Yeo Valley Dairies Limited, will give the farmer-owned dairy cooperative the rights to use the Yeo Valley brand in milk, butter, spreadables and cheese under licence from Yeo Valley.
The Yeo Valley yogurt, ice cream, cream and desserts business will continue to be run independently through Yeo Valley Group, which remains under the ownership of the Mead family.
With one in four households now purchasing organic products, there is opportunity for the dairy sector to convert more of its customers from standard to organic dairy. To fuel this growth and meet the growing needs of consumers requires investment in innovation and range and under both the Yeo Valley brand and Arla brand.
Tim Mead of Yeo Valley says: “The Burges Salmon team has been fantastic; we have a long-held ambition to grow organic dairy in the UK and they are helping us achieve that ambition.”
Completion of the transaction will take place following merger approval by the UK Competition and Markets Authority.
The Burges Salmon team was led by Nick Graves (Corporate) and Helen Scott-Lawler (IP and Commercial) with Chris Worrall advising on competition and Ian Carnochan on corporate tax.