Skip to content
Search
AI Powered
Latest Stories

Kerry Group becomes pure play taste and nutrition company with €500m dairy divestment

Kerry Group becomes pure play taste and nutrition company with €500m dairy divestment

Irish food giant Kerry Group has on Tuesday said it has entered into an agreement to sell Kerry Dairy Holdings (Ireland) Limited to Kerry Co-Operative Creameries Limited for €500 million (£416m).

Kerry Co-Op is the largest shareholder in Kerry Group.


Kerry Dairy Ireland consists of dairy consumer products, with its leading range of brands across cheese, cheese snacks, dairy snacks and dairy spreads which can be found in chilled cabinets across retailers in the UK and Ireland.

It also comprises the dairy ingredients business, which is a leading provider of Irish dairy ingredients including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.

As per the deal, Kerry Co-Op members will become direct owners of Kerry shares equivalent to 85 per cent of the Kerry Co-Op's current shareholding. The remaining 15 per cent of the Kerry Co-Op's shareholding in Kerry will be redeemed as part of the consideration for the disposal, following which the Kerry Co-Op will cease to be a shareholder in Kerry and Kerry’s issued share capital will reduce by approximately 2.9 million shares. The transaction will involve no public placement of Kerry Group plc shares.

Under the proposed transaction, the Kerry Co-Op will initially acquire a 70 per cent interest in Kerry Dairy Ireland, while Kerry will retain a 30 per cent interest. The companies have further agreed to certain call-put option arrangements which will transfer the remaining 30 per cent in Kerry Dairy Ireland to the Kerry Co-Op in the forthcoming years.

Kerry said the disposal represents an important step in its evolution to becoming a fully dedicated global taste and nutrition solutions company.

This follows the significant portfolio development over recent years including the build out of its proactive health, food protection and preservation, and enzymes platforms, while also divesting of the Consumer Foods Meats & Meals business and the Sweet Ingredients portfolio.

“Our strategy of continuous business development and portfolio evolution aligned to our customers has been a key underpin of Kerry’s success over the years. The proposed transaction will result in a global leader in taste & nutrition solutions and an end-to-end industry leader in dairy,” Edmond Scanlon, chief executive of Kerry Group, commented.

“Both businesses are perfectly positioned for success, thanks to the dedication and extraordinary contribution of our people over the years. On completion, Kerry will become a pure play global business to business taste & 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.”

James Tangney, chairman of Kerry Co-Op commented: "We are very pleased to have reached an agreement that will ultimately deliver full ownership of one of the leading dairy businesses in the country, while also, in effect, releasing circa 85 per cent of Kerry Co-Op’s Kerry Group shares into the hands of our members to be retained or sold by each of them at a time of their choosing.

“Kerry Co-Op and Kerry Group have a shared heritage that has helped create value, pioneer change and shape the dairy industry. As direct shareholders in the plc, members will continue to gain from the Group’s progress and, in tandem, the Co-Op will focus on ensuring Kerry Dairy Ireland becomes a platform for future growth”.

Kerry said the proposed transaction will have a positive impact on its overall financial metrics, with an enhanced revenue volume growth profile, combined with a step change in Kerry’s EBITDA margin profile and an improved overall sustainability profile.

More for you

Police officers in Trafalgar Square, London

Police officers in Trafalgar Square, London

Photo: iStock

New Respect Orders to target repeat perpetrators of anti-social behaviour

The government on Friday announced that they will introduce new Respect Orders as part of the Crime and Policing Bill.

The measure, a modernised version of the anti-social behaviour orders that were introduced by the last Labour Government, is aimed at the most serious offenders who plague town centres and neighbourhoods with anti-social behaviour.

Keep ReadingShow less
Exclusive: 'Faulty' pre-Horizon Post Office system led to hundreds of prosecutions

Exclusive: 'Faulty' pre-Horizon Post Office system led to hundreds of prosecutions

Ecco+, another pre-Horizon IT system that was introduced to post masters between 1992 and 1999, was also likely to be faulty due to which hundreds of sub post masters were prosecuted by the Post Office, a leading sub postmaster representative has said.

Speaking to Asian Trader today (22), Calum Greenhow - Chief Executive Officer at National Federation of Sub Postmasters (NFSP) stated that Ecco+ system that was introduced between 1992 and 1999 also created problems for sub post masters.

Keep ReadingShow less
Bestway Foundation UK donates £100,000 to The Duke of Edinburgh’s Award

Bestway Foundation UK donates £100,000 to The Duke of Edinburgh’s Award

Lord Zameer Choudrey CBE SI Pk, Chief Executive of Bestway Group, and Dawood Pervez, Managing Director of Bestway Wholesale, presented a cheque for £100,000 to The Duke of Edinburgh’s Award (DofE) at Bestway Group’s Head Office in Park Royal, London last week.

This significant contribution reflects Bestway's ongoing commitment to supporting impactful charitable initiatives that make a difference to the lives of young people across the UK. The presentation was attended by Ruth Marvel OBE, Chief Executive Officer, Laura Puddefoot-Knaggs, Head of Philanthropy and Clare Harris, Senior Relationships Manager from The Duke of Edinburgh’s Award, and Bestway Board of Directors, including Sir Anwar Pervez OBE H Pk, Chairman Bestway Group.

Keep ReadingShow less
GroceryAid: supporting grocery colleagues over the festive season

GroceryAid: supporting grocery colleagues over the festive season

As we head into the busiest time of the year for the grocery industry, GroceryAid is urging people to reach out to them if they find themselves struggling.

The charity helps grocery workers and their families through difficult times and offers a range of financial, emotional and practical support. This includes support for people facing stress, anxiety, low mood or loneliness, as well as debt advice and impartial financial support through GroceryAid’s online financial hub.

Keep ReadingShow less
Sugro UK partners with Britvic to launch industry-first sample box

Sugro UK partners with Britvic to launch industry-first sample box

Leading wholesale buying and marketing group Sugro UK has collaborated with Britvic Soft Drinks, a global organisation with 39 much-loved brands sold in over 100 countries, to launch a groundbreaking Fast Food Sample Box.

The sample box is specifically designed for ICS UK LTD customers, giving them a unique opportunity to sample and experience new Fast Food soft drinks offerings firsthand.

Keep ReadingShow less