Called CoreFX, it is Ornua’s first powder ingredient production facility in the US.

Based out of Orangeville, Illinois, it will complement Ornua’s existing ingredients production facilities in Saudi Arabia, Spain, the UK and the US.

While this business will not use Irish milk or dairy ingredients, it will bring scale to Ornua’s existing operations and indirectly add value to Irish farmers’ milk.

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Although no figure was disclosed, it is understood the business was acquired for circa €5m.

CoreFX manufactures high-value dairy ingredients for US food manufacturers and food service customers. It is understood it has sales in the region of €15m.

Headquartered in Chicago, CoreFX produces a range of dairy, cheese and powder ingredients for snack foods, sports nutrition, soups, infant nutrition and desserts.

Neville will take up the position of CEO to drive forward the business.

This investment will deliver a return for Ornua and ultimately Irish dairy farmers. Ornua also has plans to invest further, increasing both the scale and capability of CoreFX in the coming months.

Kevin Lane, Ornua CEO, said: “This acquisition is another key milestone in Ornua’s US expansion programme and is in line with our strategy to invest in high-growth and profitable dairy businesses.

Ornua’s ingredients business in the US currently has a turnover of circa $150m (€135m).

The acquisition of CoreFX reinforces Ornua’s presence in this important US market. It is in line with Ornua’s strtegy of developing a global value-added dairy business.

CoreFX has a strong position in the US dairy ingredients market, a valuable customer base, and innovative technology that can be harnessed in Ornua’s other ingredients businesses.