Glanbia plc has announced its plans to sell a 40% stake in Glanbia Ireland DAC to Glanbia Co-op for a purchase price of €307 million.
Commenting today, Donard Gaynor, chairman of Glanbia plc said, “Glanbia Ireland has a successful heritage, and for many years we have valued the partnership with Glanbia Co-op in creating a strong business under our joint stewardship.
"This is the right time for the Proposed Transaction. The Co-op is the right owner to continue the strategic development of Glanbia Ireland for the benefit of the Co-op’s members, and the PLC can continue to maximise the opportunities for its own business in the post-Covid environment, with our focus on health, wellbeing and nutrition," he said.
Strategic Rationale And Use Of Proceeds
According to the group, the proposed transaction is consistent with the PLC’s strategy to focus on its two growth platforms, Glanbia Performance Nutrition and Glanbia Nutritionals , as well as strategic joint ventures.
The PLC will increasingly focus on its global nutrition strategy as a brand owner and provider of value added nutrition solutions, serving high growth markets, it added.
The proceeds from the proposed transaction will be primarily invested in growth opportunities with up to 50% of the proceeds being returned to shareholders via a share buyback.
Commenting today, Siobhan Talbot, group managing director of Glanbia plc said, “Today’s announcement represents the next stage of our transformation journey following many years of successful collaboration with Glanbia Co-op as joint venture partners in Glanbia Ireland.
"If approved, the Proposed Transaction will continue the alignment of our portfolio to our strategy, which is focused on driving growth through our market leading positions as a brand owner and ingredient solutions provider, playing into strong underlying consumer health and wellness trends. We expect to deploy the capital received from the Proposed Transaction in investment to drive further growth and to return capital to shareholders," she added.
© 2021 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. For more a brands news click here. Click sign up to subscribe to Checkout.
