A third-generation family dairy business in Dorset has been sold to a farmer-owned cooperative for an undisclosed sum. Shaftesbury's BV Dairy, which was established in 1958 by the family of current managing director Jim Highnam, has been acquired by First Milk following a competitive bidding process.
BV Dairy sources more than 40 million litres of milk a year from farms within a 30-mile radius and it produces a range of chilled dairy products including soft cheese, yoghurt and clotted cream. The business also manufactures gut-health dairy products.
First Milk is a farmer-owned cooperative with around 700 members across Britain, supplying milk, cheese and other dairy products to businesses in the food sector.
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BV Dairy said with Mr Highnam considering retirement and "no obvious successor" within the family, the shareholders began exploring the potential sale of the company.
Business advisory firm PKF Francis Clark was approached by BV Dairy - an existing audit client - and asked to find a buyer who could "maximise its opportunities for growth while protecting the family heritage and legacy".
Mr Highnam said: “Selling a business is a marathon not a sprint, and we were supported along every step by the professional and objective guidance of PKF."
Shelagh Hancock, chief executive of First Milk, said: “I am delighted to complete the acquisition of BV Dairy, a successful family-owned business, which shares many common values with First Milk – a focus on people and community, environmental performance, exceptional quality and long-term value creation. We look forward to welcoming the wider BV Dairy family into our First Milk family.”
A team including Paul Stout, Chris Potts, Brad Anderson and Nick Farrant advised the shareholders of BV Dairy on the sale process, with tax advice provided by Lisa Whitbread and Michelle Cordy.
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Mr Potts, corporate finance director at PKF Francis Clark, said: “We are delighted to have helped the Highnam family to realise the value of their hard work over many years, knowing that the business they have built is now poised for continued success with the backing of First Milk."
Sell-side legal advice was provided by a team at Trowers & Hamlins, including Stuart Mathews, Matthew Libby and Luke Cummings. Buy-side legal advisers were Peter Allen and Bethany Grummitt at Browne Jacobson. Financial, tax and commercial due diligence for First Milk was carried out by a team at PwC, led by Drew Stevenson.