Ireland: Kerry Group to divest dairy businesses

Kerry Group, the Irish dairy business, has entered into an agreement with Kerry Co-Operative Creameries to sell Kerry Dairy Holding (Ireland) for €500 million ($530 million).

The deal supports Kerry Group’s desire to become a “pure play taste and nutrition company”.

Kerry Dairy Ireland includes Dairy Consumer Products, a business that makes cheese, cheese snacks, dairy spreads, and related products sold in the UK and Ireland, and and Dairy Ingredients, which supplies dairy proteins, dairy bases and other ingredients to the Irish dairy industry.

As part of the agreement, the Kerry Co-Operative Creameries shareholders will become direct owners of Kerry Group shares equivalent to 85% of the Kerry Co-Operative Creameries’ current shareholding and the remaining 15% will be redeemed as part of the consideration for the disposal. In so doing, the Kerry Co-Operative Creameries will initially acquire 70% of Kerry Dairy Ireland while Kerry Group will keep 30% of the company which, as part of the agreement, will be acquired in the forthcoming years by Kerry Co-Operative Creameries.

Source: Kerry Group