Primark owner Associated British Foods (AB Foods) has announced a £48 million deal to acquire dairy technology company National Milk Records (NMR).

AB Foods, which sees half of its revenues come from fast fashion chain Primark, is one of the largest food producers in the UK and operates one of the country’s biggest animal feed businesses – AB Agri – along with household names like Kingsmill and Twinings Tea.

AB Agri occupies a key position in the food supply chain, with a presence in more than 80 countries, employing over 3,000 people internationally. It supplies a wide range of animal feed, supplements and specialist ingredients, and provides value-added services and expertise to farmers, feed and food manufacturers and retailers, and works with over 2,000 UK dairy farms.

AB Foods said that NMR’s expertise would help the company to grow its agriculture business, with its data and technology platforms helping farmers to become more profitable.

José Nobre, chief executive of AB Agri, said: “We have supported dairy farmers for more than 30 years with nutrition and specialty feed products, and more recently with data and technology platforms which deliver insights that create continuous improvement in agricultural supply chains.

“Acquiring NMR is an extension of this strategy and will enable us to service the industry better, offering products that deliver increased value, efficiency and ultimately profitability for dairy farmers.”

NMR chair Trevor Lloyd added: “As the UK dairy supply chain continues its drive to carbon neutrality, NMR’s work with GenoCells and milk data, and our pivotal role in payment testing, will contribute important information to aid in this transition. The backing of ABF will accelerate and de-risk NMR’s ability to deliver its strategic objectives, streamlining industry processes by creating a holistic business that can provide end-to-end data and analysis to ensure the long term sustainability, efficiency and profitability of UK dairy.”

The NMR board has recommended the 215 pence per share cash offer, with AB Foods noting that it has already received backing from investors holding about 69 per cent of shares, with a 75 per cent threshold needed to approve the deal.

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