AB Foods to buy National Milk Records for £48m

Associated British Foods on Tuesday said it was buying dairy technology company National Milk Records for £48m.

The diversified conglomerate, which owns the Primark retail chain and Kingsmill bread brand, said it was paying 215p a share for NMR, an 87% premium to the closing price on June 5.

Founded 80 years ago, National Milk Records was incorporated in 1997, after being part of the Milk Marketing Board, which once controlled milk production and distribution in the UK, and ensured producers received a minimum price for their milk.

It now collects and analyses samples from dairy cows and provides information to farmers to help them improve production efficiency.

AB Foods said the deal would significantly boost its agriculture food business, AB Agri, which currently works with more than 2,000 dairy farms globally.

Investors holding around 69% of NMR stock have agreed to sell, just below the 75% threshold required to sanction the deal.

The deal is AB Agri's second dairy-related takeover in the past year, having bought Kite Consulting, along with its sister company, Advance Sourcing, last December.

Reporting by Frank Prenesti for Sharecast.com