Müller has confirmed its acquisition of Yew Tree Dairy in a deal designed to bolster the family-owned dairy company’s production.

The West Lancashire-based fresh milk and cream producers will now sit alongside the diary FMCG‘s existing portfolio, which includes Müller Corner, FRijj and Light.

The new agreement will enable Müller to use the dairy firm’s production capabilities for milk power in order to grow its export business, drive supply chain resilience and secure a positive future for the British dairy industry.

The completion of the acquisition is still subject to approval from the Competition and Markets Authority, which is expected to make its decision later this year.

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Once this is confirmed, it is understood Müller intends to significantly invest in the capacity and the capabilities of Yew Tree Dairy’s Skelmersdale milk drying site, allowing the new business to become a major producer and exporter of powdered milk products made in Britain.

Müller Milk and Ingredients CEO Rob Hutchison said: “This significant investment in the British dairy industry underlines our ambition to grow Müller and build a better future for the sector.

“Yew Tree Dairy has excellent processing capabilities, a talented team with great expertise, and strong relationships with its customers and supplying farms. When combined with our well-invested and resilient network, I am very confident that these two family-owned businesses will complement each other really well.

“This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience.”

Yew Tree Dairy director Carl Woodcock added: “We as a family are very proud of the dairy business we have built and are looking forward to seeing the progression and development by Müller of the Skelmersdale operation.

“We feel confident that this is the right decision for the business to be part of a larger organisation for the next phase of growth that will benefit our staff, farmers, and customers in the longer term.”