Kerry Group has made a significant move by selling its Irish dairy business, Kerry Dairy Ireland, to Kerry Co-Operative Creameries for £414.6 million (€500 million).
- The sale involves a phased acquisition, starting with a 70% stake and an option for full ownership in the coming years.
- Kerry Dairy Ireland, known for its cheese and spreads in the UK and Ireland, reported strong financials last year.
- This divestment aligns with Kerry Group’s strategic shift towards becoming a global taste and nutrition company.
- The decision reflects Kerry Group’s ongoing portfolio evolution, including past divestments such as the 2021 sale of its consumer foods arm.
Kerry Group has decided to sell its entire Irish dairy business, Kerry Dairy Ireland, to the Kerry Co-Operative Creameries for a substantial sum of £414.6 million (€500 million). This move marks a significant step in the group’s history as it pivots towards a more focused global business strategy.
The transaction is structured in two phases, where the Kerry Co-Op will initially acquire a 70% stake in Kerry Dairy Ireland. Over the next few years, the Co-Op holds the option to purchase the remaining 30%, thereby gaining complete control of the business. This strategic arrangement is designed to ensure a smooth transition and integration of operations.
Kerry Dairy Ireland is notable for its widely recognized dairy products, such as cheese and spreads that have a strong market presence in the UK and Ireland. The business recorded impressive net sales of £1.063 billion (€1.283 billion) with an EBITDA of £44.2 million (€53.4 million) in the last fiscal year, highlighting its robust performance and appeal to Kerry Co-Op.
Edmond Scanlon, CEO of Kerry Group, emphasized that this transaction signifies an important milestone for the company, shifting its focus towards becoming a specialized business-to-business taste and nutrition entity. He stated, “Both businesses are perfectly positioned for success, thanks to the dedication and extraordinary contribution of our people over the years.”
This sale aligns with the broader strategic transformation of Kerry Group, which has steadily altered its portfolio over recent years. Past divestments include the 2021 sale of its meats and meals division to Pilgrim’s Pride Corporation for £704 million (€819 million). By shedding consumer-focused segments, Kerry is honing its expertise in sustainable nutrition solutions, positioning itself for future growth and market leadership.
Kerry Group’s sale of its Irish dairy business is a pivotal step in their journey to become a leader in taste and nutrition solutions globally.
