Associated British Foods, the parent company of Primark as well as significant players in the sugar, foods, and ingredients industries, announced its acquisition of National Milk Records, a dairy technology company. The deal, valued at £48 million ($59.7 million), aims to enhance Associated British Foods’ agri-food division.
While renowned for its flagship value fashion retailer Primark, which contributes to nearly half of its impressive £17 billion revenue, AB Foods also holds significant stature as one of the largest food producers in the United Kingdom. Moreover, the company operates one of the country’s most prominent animal feed businesses.
On Tuesday, AB Foods announced that it would leverage NMR’s expertise in the dairy industry to foster the expansion of its agriculture business. This strategic collaboration aims to integrate data and technology platforms that enable farmers to enhance their profitability, primarily focusing on the British market initially.
“NMR is a high-quality business which is extremely complementary and additive to our dairy strategy and offering to the dairy industry,” said Jose Nobre, head of AB Foods’ AB Agri unit.
The board of NMR has endorsed ABF’s cash offer of 215 pence per share, as per the recommendation. AB Foods confirmed in its statement that it has secured support from investors who collectively hold approximately 69% of the shares, approaching the 75% threshold required for the deal’s approval.
The anticipated timeline for the completion of the deal is during the third quarter.
