Netherlands-based dairy group Royal A-ware is planning to acquire Belgium-based peer The Dairy Food Group.

Based in Zonhoven in northern Belgium, The Dairy Food Group manufactures a range of dairy products for branded manufacturers and for retailers under private label. Financial details were not disclosed.

The deal includes The Dairy Food Group’s businesses such as daily milk collection group BMC, dessert specialists Eurodesserts and fromage-frais-to-milk drinks supplier Limelco.

The transaction will be referred to the European Commission, Royal A-ware said. The company is aiming to finalise the deal before the end of the year.

In a statement, Royal A-ware said the acquisition is in line with the business’ strategy of “continuing to expand its dairy operations in Belgium while further strengthening its position in what is now a second domestic market”.

Jan Anker, CEO of Royal A-ware, added: “Once the acquisition process is complete, we can optimise our milk processing operation in Belgium even further and work on making supply chains even more efficient. We will also be able to offer our customer base an even wider product portfolio.”

The Dairy Food Group, a co-op that collects goods from 260 farmers daily, said it sees the sale of the company as “providing opportunities to achieve its growth ambitions sooner and create new jobs”.

Nathalie Nijs, the group's CEO, said: “We are delighted to be joining the Royal A-ware Food Group. This step means, for instance, that we can accelerate the sustainability credentials of our operations.

“As a family business, Royal A-ware strives for the same values as we do and is therefore a perfect match.”

Royal A-ware, headquartered in the Dutch town of Lopik, has operations in the Netherlands, Belgium, Spain and the US.

Anker, the company's chief executive, is from the Anker Kaas family business that merged with Bouter Cheese in 2010 to create Royal A-ware.

In April last year, Royal A-ware had snapped up a dairy facility from Danone in Spain. The company said it would start producing mozzarella at the plant in Salas.