City File: Avonmore ready to milk the market

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The Independent Online
AVONMORE, the Irish food group, is to buy a processing plant from the Milk Marketing Board's commercial arm, Dairy Crest, as part of the MMB's debt-reduction plan in advance of next year's flotation.

The acquisition of the Perry Barr site in the West Midlands, expected to be completed early this week, will give Avonmore almost 7 per cent of the British liquid milk market.

The deal is thought to be worth pounds 25m, and analysts would not be surprised if Avonmore tapped the market for cash to fund both this and other purchases. Avonmore has been building its presence in the British milk market since 1988, and the Dairy Crest deal will bring its share to 80 million gallons.