Dairy Crest has bought the business and assets of specialist milk business Proper Welsh Milk from administrators BDO for £325,000.

Founded in 2011, Proper Welsh Milk employs around 40 people and supplies milk for Tesco, Marks and Spencer and other customers.

Proper Welsh Milk, which was hit by cashflow problems and went into administration on 1 March 2013, had invested over £1m in a new dairy on the site of the former Whitland Creamery in Carmarthenshire, but insurmountable cashflow problems caused it to enter administration on 1 March 2013.

BDO joint administrator Simon Girling said: 'We are pleased that this important facility in the local community has been preserved, and can now enter a new era with confidence, with the support of an industry major.'

Commenting on the acquisition, Mark Allen, chief executive of Dairy Crest, said: 'We are delighted to be the new owners of this business which we believe has a bright future. Our priority is to maintain supply to customers and use this modern dairy in a strong milk field to help us to develop new products, such as vitamin enriched milk. We welcome the employees of Proper Welsh Milk to Dairy Crest and look forward to working with them.'

Dairy Crest said it is 'committed to supporting dairy farming in Wales and is one of the country's biggest milk buyers'. Until the acquisition, all of its Welsh milk has been packed in England.