Robert Wiseman Dairies to be Sold for £279.5M

Robert Wiseman Dairies (LSE:RWD), one of UK’s leading provider of fresh milk, announced today, it has accepted the takeover bid by Muller Dairy (UK) Limited for £279.5 million.

Shares of RWD have surged 59% from its January 12th trading prior to any announcement relating to any purchase offer, currently trading at 388.75p as of lunch time.

RWD stocks closed at 244p on Thursday last week and rose 84p more, or 34%, the following day to 328p when the company announced it was in talks with the Muller Group for a possible buyout.

The buyer, Muller Dairy (UK) Limited, is a wholly-owned subsidiary of Unternehmensgruppe Theo Müller or the Muller Group, a diversified conglomerate of dairy products, packaging company, logistics, and food processing businesses based in Germany. Muller Dairy markets diversified range of yoghurt products.

In the announcement today, the Muller Group has received irrevocable undertakings from 54.9% of the interests in Wiseman sealing the deal.

Merger of Complementary Businesses

Both companies declared that their combined expertise in dairy production will enhance the presence of the brands in the UK and the rest of Europe. Both companies started as family-run businesses, which they hope to capitalise by sharing of values, culture, and approach.

CEO Comments

Executive Chairman Robert Wiseman, speaking on behalf of Robert Wiseman Dairies, and Chief Executive Officer Heiner Kamps of Muller Dairies share the same optimism in the positioning of both companies in the UK and Europe.

Mr. Wiseman said,

“The combination of Muller and Wiseman makes strong commercial and strategic sense, creating a leading integrated dairy business in the United Kingdom with complementary positions in the yoghurt and potted desserts market and the fresh milk market.”

Mr. Kamps, on his part, stated,

“This is an exciting strategic move by Muller to enter a new market segment in the UK. The combination of these complementary businesses will form a leading dairy player offering a range of exceptional products to our customers across the UK. This will create significant opportunities which will benefit suppliers, customers, consumers and employees.”

Company Spotlight

Robert Wiseman was established in 1947 as a family owned business and currently provides for 30% of the daily fresh milk consumption in the United Kingdom, operating from six major processing plants across the country.

References
↑ Company History
↑ The Muller Group Company Portrait

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