IRELAND – Kerry Co-Operative Creameries, Ireland’s largest dairy co-op and the principal shareholder of Kerry Group, has officially acquired a 70% stake in Kerry Dairy Ireland.
This transaction follows the completion of phase one of the disposal of the Group’s consumer dairy business, which concluded on December 31, 2024.
According to the agreement, Kerry Group redeemed and cancelled the co-op’s entire shareholding, reducing its issued share capital by approximately 2.9 million shares.
As per the terms announced in November 2024, Kerry Group will retain a 30% stake in Kerry Dairy Ireland to ensure continuity, although the co-op has the option to acquire this remaining interest in the future.
The deal, which was formally ratified by both Kerry Group’s board and the co-op’s members, allows the Group to shift its focus to its more profitable taste and nutrition solutions business.
Following this shift, Kerry Dairy Ireland will no longer be consolidated into the Group’s financial statements, with the 30% stake recorded as an investment.
The total consideration for the transaction is estimated at €500 million, with €350 million attributed to phase one.
The agreement also includes the creation of a €50 million fund aimed at resolving an ongoing milk price dispute between Kerry Group and the co-op’s milk suppliers.
This fund absolves Kerry of any future liability under the milk supply agreement, which remains in effect until 2026.
Edmond Scanlon, CEO of Kerry Group, described the development as a significant milestone in the company’s transformation into a global business-to-business taste and nutrition company.
He emphasized that sustainable nutrition is now at the core of Kerry’s strategy and highlighted the company’s commitment to achieving strong financial performance.
Scanlon expressed gratitude to Kerry Dairy Ireland employees for their contributions and wished them success in the future.
The deal followed overwhelming approval from Kerry Co-op members, who endorsed the proposal with 82% support at a Special General Meeting held in Killarney.
James Tangney, Chairman of Kerry Co-op, hailed the decision as a transformational milestone that balances the diverse interests of the co-op’s shareholders.
Tangney noted that the deal enables full ownership of Kerry Dairy Ireland while unlocking significant value for co-op members by redistributing approximately 85% of the co-op’s Kerry Group shares, valued at €1.4 billion.
Under the approved plan, Kerry Co-op’s 16.1 million shares in Kerry Group PLC will be redistributed among its members, including active milk producers, former producers, and non-producer shareholders.
This financial arrangement is backed by the redemption of 2.9 million shares by Kerry PLC, generating €250 million to fund the acquisition.
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