Arla Foods acquires UK logistics provider to strengthen its operations

UK – Arla Foods UK has acquired the distributor of a diverse range of products in ambient and chilled environment, PCL 24/7 Ltd and take on the services which are currently performed by PCL Transport 24/7 Ltd, with the exception of Bristol.

Arla Foods said that the acquisition will enable the company to ensure stability of its Hatfield operations and the continuation of service to its customers. 

With PCL 24/7 Ltd as its subsidiary, Arla now plans to take over the lease to the Hatfield warehouse and bring all in-house logistics operations related to those services previously provided by PCL. 

As part of the acquisition, 470 PCL employees are expected to transfer to Arla. In addition to the lease of the Hatfield site, assets currently used in operation of the site will also transfer.  

The deal also cuts down the timeline for Arla’s transfer of its Bristol operations, which were awarded to GIST. The company said that the milk volume will transfer to GIST, with effect from 6 March 2020. 

Arla Foods UK MD Ash Amirahmadi commented: “Bringing our Hatfield operations in house will allow us to focus on delivering the best possible service to our customers.

“We look forward to welcoming our new colleagues at the Hatfield site and we will work hard to maintain a smooth and seamless transition for our customers throughout this process.” 

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UK is among the major regions of focus that Arla believes has the greatest potential to grow a long-term profitable business for its farmer-owners. Towards 2020, the company expects 50 per cent of its growth to come from Europe.

This year, Arla Foods has also identified growth opportunities in eight categories including; milk and powder, milk-based beverages, spreadable cheese, yogurt, butter and spreads, speciality cheese, mozzarella and ingredients, which the company says  will enable it to strengthen its global and regional operations.

The company has already started construction of a new €40 million (US$44.07m) modern innovation centre for the ingredients business in Nr. Vium, Denmark.

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