Lloyds TSB Commercial Finance and Barclays have jointly arranged a refinancing package to support UK dairy co-operative First Milk's strategic plans over the next three years.

The £120 million asset based lending facility has refinanced the previous funding package, which was co-arranged by the lenders in 2009.

Glasgow-based First Milk is the UK's leading dairy farmer-owned firm, with approximately 2,000 shareholders across the UK producing some 13 per cent of the UK's milk output. The business provides a route to market for farmer's milk where profits from sales are returned to its shareholders through a mixture of milk price and a return on capital they have invested in the company.

This refinancing deal follows the completion of a number of acquisitions for First Milk, including that of Manchester-based leading sports nutrition business, CNP Professional, in May this year. The acquisition formed a part of First Milk's strategy to diversify into the developing functional foods sector.