October 18, 2005

Arla Foods sells London Food Service business to Dairy Crest

UK dairy giant Arla Foods sold its London Food Service (LFS) business to Dairy Crest for GBP4 million, in an effort to reduce its borrowings.

LFS sold to caterers, shops and households in London and surrounding areas. The business recorded an operating profit of GBP2 million in the 18 months to September 30, 2004, with gross assets of GBP3.2 million.

Earlier this year, Arla said it expected lower profits due to higher oil prices.