News
Kerry Group agrees to €500m sale of Kerry Dairy Ireland
Kerry Dairy Ireland has a portfolio of brands that includes Cheestrings, Dairygold and Kerrymaid, with its cheese and dairy products sold by retailers in the UK and Ireland.
It also has a dairy ingredients business that supplies functional dairy proteins, nutritional dairy bases and cheese systems.
The deal will take place in two stages, with Kerry Co-Op initially acquiring a 70% stake for €350m, prior to taking ownership of the remaining 30% in the forthcoming years when the remaining €150m is paid.
Phase 1 of the deal is expected to close in January 2025, after which point Kerry Group will be a dedicated supplier of taste and nutrition solutions for the food, beverage and pharmaceutical markets.
For the 2023 fiscal year, Kerry Dairy Ireland generated €1.3bn in revenue and profit before tax of €32m.
Kerry becoming ‘pure play ingredients firm’
Kerry Group chief executive Edmond Scanlon said that move represented a “significant step” as the firm becomes a pure play B2B taste and nutrition company.
“Our strategy of continuous business development and portfolio evolution aligned to our customers has been a key underpin of Kerry’s success over the years,” Scanlon commented.
“The proposed transaction will result in a global leader in taste & nutrition solutions and an end-to-end industry leader in dairy. Both businesses are perfectly positioned for success, thanks to the dedication and extraordinary contribution of our people over the years.”
As part of the agreement, Kerry Co-Op members will become direct owners of 85% of the Co-Op's current shareholding in Kerry Group.
The remaining 15% of its shareholding in Kerry will be redeemed as part of the transaction.
Kerry Co-Op chair James Tangney added: "We are very pleased to have reached an agreement that will ultimately deliver full ownership of one of the leading dairy businesses in the country.
“[The two firms] have a shared heritage that has helped create value, pioneer change and shape the dairy industry.
“As direct shareholders in the plc, members will continue to gain from the group’s progress and, in tandem, the Co-Op will focus on ensuring Kerry Dairy Ireland becomes a platform for future growth”.
In other news, representatives from Unite the Union have taken part in protests outside the offices of the biggest shareholders in Bakkavor as strike action continues at one of its UK production plants.
