Former dairy co-operative Milk Marque has begun talks with a "handful" of medium-sized firms with a view to investing £15m of deferred profit in another agrifood business.
Last month, Milk Marque's 10,200 members voted overwhelmingly for the co-op to be wound up and converted to a private company - probably by January - giving the board a mandate to find a suitable acquisition.
Company secretary John Sherwood said shareholders were looking for a profitable business, valued at £10-20m, which had potential for growth. Although it had not set its sights on any sector, it had concentrated on firms with some synergy with Milk Marque's members, most of whom were farmers.
Milk Marque was set up in 1994 following the demise of the Milk Marketing Board and was subsequently split into three marketing groups.