IRELAND – Kerry Group has reached an agreement with Kerry Co-operative Creameries to sell its Consumer Foods Products and Dairy Ingredients division, Kerry Dairy Ireland, for up to US$531.7 million.
This deal, considered one of the most significant in Ireland’s agri-food sector in recent years, will unfold in two phases: 70% of the business will be acquired by January 2025, with the remaining 30% transferred by 2035.
The agreement reflects a strategic shift for both organizations, with Kerry Group focusing entirely on its global taste and nutrition solutions business, while Kerry Co-op strengthens its position in dairy processing and brand ownership.
Kerry Dairy Ireland processes over 1.1 billion liters of milk annually from 2,740 family farms, mainly across Munster. It employs more than 1,500 people and exports products to 58 countries.
The division generated €1.3 billion in revenue in 2023 and operates six manufacturing facilities across Ireland and the UK.
Its portfolio includes well-known consumer brands such as Cheestrings, Dairygold, EasiSingles, LowLow, Kerrymaid, and Charleville. Additionally, it runs 31 agri-services stores under the “Farm & Home Store” brand and a feed mill in Farranfore.
Under the agreement, the initial 70% stake in Kerry Dairy Ireland is valued at €350 million, based on a total enterprise value of €500 million.
Kerry Co-op will have the option to acquire the remaining 30% by 2030. The transaction will be funded through a share exchange, whereby Kerry Co-op members will receive new Kerry Group shares, equating to 85% of their Co-op shareholdings.
The deal structure is designed to minimize upfront tax implications for Irish residents, with capital gains tax deferred until the eventual sale of the shares.
Edmond Scanlon, CEO of Kerry Group, emphasized that the transaction marks a pivotal moment in Kerry’s 50-year journey. It allows the group to fully concentrate on its core business of taste and nutrition, enhancing growth and margin profiles while promoting sustainable nutrition.
James Tangney, Chairman of Kerry Co-op, described the deal as transformative, ensuring control over critical regional dairy processing assets and fostering long-term growth for dairy farming families.
He added that the agreement aligns with the diverse aspirations of Co-op members and positions Kerry Dairy Ireland for future success.
The transaction is set for a shareholder vote, with the Co-op’s Special General Meeting scheduled for December 16 and Kerry Group’s Extraordinary General Meeting on December 19.
If approved, the deal will strengthen Kerry Co-op’s role in the dairy sector and enable Kerry Group to advance its global market leadership in taste and nutrition solutions.
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