Bristol law firm Burges Salmon has advised on the creation of the UK’s largest dairy company, formed by the merger of the firm’s longstanding client Milk Link with Arla Foods amba.
The merger brings together two successful and growth-orientated farmer-owned dairy processing businesses with complementary position
s in key markets, brands and customer bases. It creates the UK’s number one dairy business, processing more than 3bn litres of milk a year and with a combined turnover of more than £2bn.
A specialist team from Burges Salmon advised Milk Link at all stages of the process, including the initial merger proposal, which was made public in May this year. In June Milk Link member approval was achieved and the subsequent focus was on securing regulatory approval, which received from the European Commission on September 28.
The merged business has established market positions in fresh and long-life liquid and flavoured milks, cream, Cheddar and speciality cheese, butter and dairy ingredients. It has well-invested, state of the art processing facilities located across the UK, complemented by a national milk supply.
Burges Salmon corporate partner Camilla Usher-Clark, pictured, said: “This was a challenging project involving a number of complex and novel legal and commercial issues. Completion secures a long-term home for more than 1.2bn litres a year of members’ milk and the first ever contractual linkage between the price paid to farmers for their milk in the UK and the milk price in the wider European market.”
Camilla was joined by senior partner Alan Barr leading the Burges Salmon team which worked very closely with Milk Link during the complex merger process – fielding specialists from across its co-operative, food & farming, competition, pensions and employment practice areas.
Milk Link’s former chief executive Neil Kennedy has taken a senior strategic role in the new enlarged business, initially responsible for milk and member services. In addition he has taken up the role of chairman of Dairy UK.
Burges Salmon also worked with one of its global preferred firms, Gorrissen Federspiel, which advised on the Danish law aspects of the merger.
The wider Burges Salmon team included corporate finance associates AJ Venter and Tim Roberts, the firm’s head of competition Laura Claydon assisted by associate Marc Shrimpling, the firm’s head of food and farming William Neville, employment partner Roger Bull and newly promoted pensions partner Michael Hayles.
Burges Salmon has significant strength and depth of experience in both specialist co-operative law and in the food & farming sector. It has worked with Milk Link since its creation in 2000 following the break-up of the Milk Marketing Board and watched it grow into the UK’s most progressive integrated dairy business. Entirely owned by British dairy farmers, Milk Link employs around 1,200 people at eight processing facilities and in 2010/11 generated a turnover of £586m.
