Lakeland and LacPatrick dairies agree Merger
Lakeland Dairies and LacPatrick Dairies have reached agreement to merge.
It follows the unanimous approval of the Boards of both co-operative societies who are recommending the proposed merger to their respective shareholders.
Exclusive discussions about a possible merger started last June and have reached a positive outcome where the Boards of both societies are unanimously recommending shareholders to vote in favour of the merger at Special General Meetings which will be held on Tuesday, October 23 next.
Regulatory approval will also be required.
Lakeland Dairies and LacPatrick Dairies are neighbouring societies and both operate on a cross border basis exporting the vast majority of their output to global markets. Each has a heritage of excellence in co-operative dairy farming spanning well over a century and share common business development aims in the interests of their shareholders, milk producers and rural communities.
The amalgamation of Lakeland and LacPatrick is a coming together of two dairy co-operatives on the island of Ireland to form a strong force in the global dairy industry. Both co-operatives are highly successful agrifood industry players with excellent manufacturing facilities and complementary strengths and advantages in their various worldwide markets.
As an absolute priority, the combined new co-operative will work to support dairy farming families on a long term basis into the future by maximising market returns and paying a sustainable and competitive milk price in line with market conditions.
Owned and controlled by farmers, with over 3,200 milk suppliers and a collective milk pool of some 1.8bn litres, the new co-op will be the second largest dairy processor on the island of Ireland. It will have a combined annual turnover in excess of €1bn, creating internationally competitive scale while ensuring efficient costs of operation.
The announcement was made jointly by the Chairman of LacPatrick Dairies, Andrew McConkey and the Chairman of Lakeland Dairies, Alo Duffy, together with Michael Hanley, CEO of Lakeland Dairies who will be appointed Group CEO of the new merged co-operative society which will adopt the name of Lakeland Dairies.