Markets
Müller swoops for Robert Wiseman
Matthew Jeynes, 16 January 2012
Robert Wiseman Dairies has agreed to a takeover bid from German firm Müller.
The offer valued the company at £279.5 million, or 390p per share, which was a 59.8 per cent premium on the value of the shares on Thursday 12 January 2012.
Shares in the Scottish milk producer, which accounts for 30 per cent of Britain’s milk, surged to 328p on Friday after news of the offer emerged.
The stock then climbed a further 18 per cent to 388.75p this morning as Robert Wiseman accepted the bid.
Robert Wiseman, executive chairman of Wiseman, commented, ‘Müller's offer represents an attractive price for an outstanding business and Müller recognises the importance of Wiseman's management (who will continue to lead the business alongside Müller), employees and our best-in-class assets.’
Wiseman suffered from the squeeze on shoppers' disposable income in 2011 and had reported a fall in full-year profits in November last year, though its Christmas trading statement was in line with expectations.
Müller, known for its ‘Müller Corner’ and ‘Müller Rice’ products in the UK, expects to fund the acquisition through use of existing cash and £205 million raised from Deutsche Bank.
Heiner Kamps, CEO of Müller, commented, ‘This is an exciting strategic move by Müller to enter a new market segment in the UK.
‘The combination of these complementary businesses will form a leading dairy player offering a range of exceptional products to our customers across the UK.
‘This will create significant opportunities, which will benefit suppliers, customers, consumers and employees.’
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