The potential merger was revealed in February.
In doing so, they said they believe the merger will establish a sustainable and progressive dairy business in the best interests of their combined staff, customers and the British dairy farmers that supply them.
They said the merger, which is subject to regulatory approval, will create a viable, long-term, fresh liquid-milk business with the requisite scale and agility to compete with the companies dominating the dairy sector in the UK.
Medina Freshways Ltd. will have a combined turnover of around £400m ($549m), employ 1,000 staff, and process in the region of 500m liters of British Red Tractor farm assured milk.
A new board and management structure will be put in place to oversee the merger, ongoing operations and strategic development of the combined business with Sheazad Hussain (currently chief executive of Medina Dairy) and Bali Nijjar (currently managing director of the Freshways group of companies), being appointed as joint managing directors.
Nijjar and Hussain said, “Throughout our discussions it has become increasingly apparent how complementary both businesses’ capabilities and cultures are. As such, through merging we will be able to harness these synergies to create a leaner, more agile and fit for purpose business. A business that will benefit customers, consumers and suppliers and ultimately, we believe, will be well placed to grow and develop in a sustainable manner for the long term.”