Unigate has snapped up an organic milk and bulk cream production plant from ex-Northern Foods' Wessex Dairies.
The deal, said to be worth £1.1m, also sees Wessex's retail arm being sold to Lordswood Dairies.
The Thornbury dairy near Bristol employed 208 people under Wessex Dairies. Up to 141 could lose their jobs, but Unigate says 67 will remain with the company.
Unigate refused to confirm whether the acquisition would lead to a raft of new organic products.
And it would not say whether it was making further moves to consolidate in the dairy sector.
"We will always look at potential businesses to integrate into our own," said a spokeswoman.
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