Aurivo Co-operative is set to take over ownership of Arrabawn’s branded liquid milk, butter and van sales business later this month.
It follows confirmation from the Competition and Consumer Protection Commission (CCPC) on Friday (September 15) that it had given the green light to Aurivo Consumer Foods Limited to acquire certain assets of Arrabawn Co-Operative Society Limited.
The watchdog determined that the proposed acquisition would not substantially lessen competition in these markets.
In a statement, Aurivo said it was pleased to confirm that its offer to the board of Arrabawn had been approved by the CCPC.
The positive move is in line with Aurivo’s strategy to invest in liquid milk, the processor said.
Aurivo
The decision means that the well-established Dawn and Arrabawn milk brands will be added to Aurivo’s portfolio of products, including Connacht Gold, Donegal Creameries and Organic for Us.
The processor confirmed that the new ownership will come into effect on September 29, 2023.
Speaking about the acquisition, Donal Tierney, Aurivo chief executive, said: “Arrabawn and Dawn are well-established brands and will be a fantastic addition to Aurivo’s high quality milk and butter brand portfolio.
“Aurivo has a long track record in liquid milk investment and we look forward to working with our new team members continuing to deliver a fantastic service to our valued new and existing customers.
“This purchase further solidifies our commitment to the liquid milk market in Ireland and to serving our customers with a wide range of branded and private label milk and butter products,” he said.
Last August, the board of Arrabawn announced that it had decided to cease processing operations at its liquid milk plant in Kilconnell in east Co. Galway by summer 2023.
The co-op will retain ownership of the plant and is set to examine alternative uses for the facility.
Arrabawn Co-op currently employs 110 people in the liquid milk portion of its business.
The co-op had previously said that approximately half of these workers will transfer with the business, with redeployment opportunities also being made available to others across the wider company.