LAKELAND Dairies has expanded its animal feed business with the acquisition of O'Hare Animal Feeds of Dundalk. The consideration has not been disclosed, but O'Hare has sales of £6 million, with over 500 customers in both the Republic and Northern Ireland.

Lakeland already produces over 130,000 tonnes of animal feed a year, from three provender mills at Lough Egish, Castlebellingham and Killeshandra. O'Hare currently produces 30,000 tonnes of feed a year, but its operations will be merged with Lakeland and all demand will be met from Lakeland's existing facilities and a new £4 million provender mill at Lough Egish which will be completed next ear.

Lakeland's chief executive, Mr Dan Buckley, said the acquisition will strengthen the co-op's agri-trading operations and the strategy is to increase sales of animal feed in the north-east and particularly in Northern Ireland.

O'Hare's managing director, Mr Paul O'Hare, said 14 production staff will be leaving the company but that most of the sales. marketing and administration staff will become Lakeland employees.