Kerry Group plc (Ireland) announced that it has entered into an agreement with Kerry Co-Operative Creameries Limited (The Co-Op) to sell Kerry Dairy Holdings Limited to the Co-Op (The Disposal) for a total expected consideration of €500 million. Kerry Ireland is fully owned by Kerry.
Kerry Dairy Ireland consists of dairy consumer products, with its range of brands across cheese, cheese snacks, dairy snacks and dairy spreads across retailers in the U.K. and Ireland. It also comprises the Dairy Ingredients business, which is a leading provider of Irish dairy ingredients including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.
Under the Proposed Transaction, the Co-Op will initially acquire a 70 percent interest in Kerry Dairy Ireland, while Kerry will retain a 30 percent interest.
The proposed transaction represents an important step in Kerry’s evolution to becoming a fully dedicated global taste and nutrition solutions company, Kerry stated. This follows the portfolio development over recent years including the build out of its proactive health, food protection and preservation, and enzymes platforms, while also divesting of the Consumer Foods Meats & Meals business and the Sweet Ingredients portfolio. According to the company, the Proposed Transaction will result in greater portfolio clarity, a more simplified business structure, and increased capital deployment focus across Kerry’s core taste and nutrition business.
“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,” said Edmond Scanlon, CEO of Kerry Group. “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. On completion, Kerry will become a pure play global business to business taste & nutrition company, with sustainable nutrition at its core.”
For more information, visit www.kerry.com.
