LONDON (Alliance News) - Dairy Crest Group PLC on Monday said it has bought the outstanding 50% share of Promovita Ingredients Ltd for GBP6.0 million in cash.
Promovita was established in 2014 as a 50/50 joint venture between Dairy Crest and Fayrefield to develop and produce Galacto-Oligosaccharide (GOS), a prebiotic for use in infant formula. The GBP6.0 million cash will be funded through existing borrowing facilities.
"This is a further important step in the evolution of our added-value ingredients business. We remain on track to begin commercial production of GOS in early 2016 and this acquisition gives us full control over the development of this exciting business," Chief Executive Mark Allen said.
Shares in Dairy Crest were down 0.4% at 648.50 pence shortly after the market open on Monday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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