Golden Vale and Express Dairies to sell Dale Farm for £18.25m

Golden Vale and Express Dairies have agreed to sell Northern Ireland-based Dale Farm Dairies.

The buyer is Dromona Quality Foods, a subsidiary of the United Dairy Farmers co-operative.

The £18.25m transaction is subject to merger clearance.

Dale Farm was established as a joint venture in February, 2001, combining the Northern Ireland liquid milk businesses of Express, which has an 80% stake in the business, and Golden Vale, which owns 20%.

Express will receive 80% of the proceeds - some £14.6m.

In the year to March, 2001, Dale Farm made an operating profit contribution of £1.2m before exceptional items to Express, and represented £10m of Express's net assets.