Wiseman agrees to £280m dairy takeover

Robert Wiseman said more than half of its shareholders have accepted the offer from the German-owned yoghurt maker best known for Muller Corner and Muller Rice.

Although shareholders have yet to officially vote, it is being seen as a done deal by analysts, and will trigger a £98m windfall for the Wiseman family, who own 35 per cent of the shares.

Wiseman produces about a third of the fresh milk consumed in the UK and counts the Co-operative Group, Sainsbury’s and Tesco among its customers.

The recommended cash offer of 390p per share is at a 60 per cent premium to Robert Wiseman’s share price close on Thursday, the day before the announcement of the offer.

“It’s a fair price,” analyst Charles Pick of Numis Securities said, pointing out the tough market conditions in which Robert Wiseman operates.

“First take on it was in the 365p to 410p region. 390p is towards the upper end of that.”

Robert Wiseman, which has a depot in Normanton, said in a trading update yesterday that it expects profits for the fourth quarter ending March to be hit by the higher price of raw milk and diesel.

With shoppers’ disposable incomes squeezed by rising prices, muted wages growth and Government austerity measures, retailers are struggling to deliver growth.

In November, Robert Wiseman reported a fall in its full-year profits.

The company said the deal complements its positions in the yoghurt, potted desserts and fresh milk markets.

Robert Wiseman reported total sales of £917.5m for the financial year ended April 2, 2011.

Muller, which is owned by privately held Theo Muller, expects to fund the deal through its existing cash resources and a letter of credit with Deutsche Bank.

The company already has the support of about 54.9 per cent of Robert Wiseman’s shareholders.

Muller said Wiseman’s executive management team will continue to lead the business, and it will maintain its headquarters in East Kilbride.

“It looks a win-win deal pretty much all around,” analyst Mr Pick added.

Robert Wiseman, executive chairman of Wiseman, said the deal made “strong commercial and strategic sense”, by combining two leading dairy business- es.