LONDON, UK: AB Agri Limited (an indirect wholly-owned subsidiary of Associated British Foods plc (ABF)) will acquire the entire issued and to be issued ordinary share capital of National Milk Records plc (NMR) at the rate of 215 pence in cash per NMR share. The acquisition values the entire issued and to be issued ordinary share capital of NMR at approximately £48.0 million on a fully diluted basis.
It is intended that the offer be implemented by means of a Court-sanctioned scheme of arrangement.
The ABF Group is a diversified international food, ingredients and retail group with 132,000 employees in 53 countries. ABF has a premium listing on the Main Market of the London Stock Exchange and has a market capitalisation of some £14 billion with a net cash position of circa £0.6 billion.
AB Agri is ABF’s international agri-food business and a leader in the UK agricultural sector. AB Agri occupies a key position in the food supply chain, with a presence in more than 80 countries, employing over 3,000 people internationally.
AB Agri supplies a wide range of animal feed, supplements and specialist ingredients, and provides value-added services and expertise to farmers, feed and food manufacturers and retailers.
It operates at the heart of the agricultural industry and its vision centres around working with its customers to produce high-quality, affordable, safe and responsibly sourced food products. AB Agri has an established position in the UK dairy industry, working with over 2,000 UK dairy farms.
Trevor Lloyd, Chairman of NMR, said: “I am pleased to announce ABF’s intention to acquire NMR. ABF’s and AB Agri’s status within the UK agricultural sector and expertise in the dairy industry will provide a significant benefit to NMR’s customers. As the UK dairy supply chain continues its drive to carbon neutrality, NMR’s work with GenoCells and milk data, and our pivotal role in payment testing, will contribute important information to aid in this transition. The backing of ABF will accelerate and de-risk NMR’s ability to deliver its strategic objectives, streamlining industry processes by creating a holistic business that can provide end-to-end data and analysis to ensure the long term sustainability, efficiency and profitability of UK dairy.
The NMR team looks forward to working as part of ABF and AB Agri to further position NMR as a leading player at the centre of the UK dairy industry.”
José Nobre, Chief Executive of AB Agri, said: “I am delighted to be announcing AB Agri’s intention to acquire NMR. NMR is a high-quality business which is extremely complementary and additive to our dairy strategy and offering to the dairy industry. We have supported dairy farmers for more than 30 years with nutrition and specialty feed products, and more recently with data and technology platforms which deliver insights that create continuous improvement in agricultural supply chains. Acquiring NMR is an extension of this strategy and will enable us to service the industry better, offering products that deliver increased value, efficiency and ultimately profitability for dairy farmers. NMR has assembled a strong team and we are excited by the prospect of working together with them to accelerate the development of the business.”
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