Kerry Group today announced that the first phase of its disposal of Kerry Dairy Ireland was completed on 31 December 2024.
The group announced in November that it was selling its dairy arm to Kerry Co-Operative Creameries Limited for an expected total of €500 million.
As part of the first phase, the co-op has acquired a 70% interest in the dairy, with the group retaining a 30% interest.
Since this stage is now complete, the companies will move into the second phase of the sale.
In the ‘Phase 2 Transaction,’ the co-op will have the right to purchase the remaining 30% interest in Kerry Dairy Ireland in exchange for €150 million in cash, as long as they close the deal no later than 31 December 2035.
In the event that the co-op does not use this option before 31 July 2030, the group will have the right at any time between 31 July 2030 and 31 July 2035 to require the co-op to buy the dairy group for the same amount.
Kerry Dairy Ireland has six dairy-manufacturing facilities across Ireland and the UK, and the business has a strong portfolio of food brands.
Brands produced under the label include Cheestrings, Dairygold, EasiSingles, LowLow, Kerrymaid and Charleville.
Kerry Group noted that the proposed deal represents an important step in its evolution to becoming a fully dedicated global taste and nutrition solutions company.
‘Delivering Greater Returns’
Commenting on the completion of phase one, the chief executive officer of Kerry Group Edmond Scanlon said, “Today marks a significant step in Kerry’s history, becoming a pure-play global business-to-business taste and nutrition company, with sustainable nutrition at its core, while also supporting our financial objectives of continued market outperformance, strong margin progression, and delivering greater returns for our shareholders.
“I would like to recognise the Kerry Dairy Ireland employees for their contribution to Kerry over the years and wish them the very best in the future.”
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