Kerry Group Completes Phase One of Kerry Dairy Ireland Sale
Source: DairyNews.today
Kerry Group has officially completed the first phase of its €500 million sale of Kerry Dairy Ireland to Kerry Co-operative (Co-op), marking a significant step in the company’s strategic evolution.
The sale, approved by Kerry Group shareholders in December, involves Kerry Co-op initially acquiring a 70% stake in Kerry Dairy Ireland for €350 million, with the remaining 30% to be transferred by 2035. Under the joint ownership agreement, Kerry Group will receive a fixed annual dividend of €7.5 million until full ownership is transferred.
Strategic Milestone
In a statement issued on January 2, 2025, Kerry Group announced that the first phase of the sale was finalized on December 31, 2024. The process included the redemption and cancellation of Kerry Co-op's shareholding of 19,045,396 ordinary shares, replaced by the issuance of 16,187,024 new shares to Co-op members. As a result, Kerry Group’s total issued share capital decreased to 166,440,652 ordinary shares.
“This is a transformative moment for Kerry Group,” said Edmond Scanlon, CEO of Kerry Group. “We are now a pure-play global taste and nutrition company focused on sustainable solutions, while also driving market outperformance, margin progression, and enhanced shareholder returns. I want to express my gratitude to the employees of Kerry Dairy Ireland for their invaluable contributions and wish them continued success in the future.”
Kerry Dairy Ireland’s Role and Impact
Kerry Dairy Ireland has long been a cornerstone of the region’s dairy industry, processing over 1.1 billion liters of milk annually from 2,740 family farms across Munster. The business operates seven production facilities in Ireland and the UK, producing household brands such as Cheestrings, EasiSingles, LowLow, Dairygold, and Charleville.
With forecasted revenue of €1.3 billion for 2024, Kerry Dairy Ireland employs more than 1,500 people and runs 31 agri-services stores across Kerry, Limerick, Clare, and north Cork. The company’s existing leadership, led by CEO Pat Murphy, and all current employees will remain in their roles under the new ownership structure.
Strategic Realignment
The sale underscores Kerry Group’s focus on its global taste and nutrition business, which emphasizes sustainable nutrition and innovation. Listed on the Dublin and London Stock Exchanges, the company aims to leverage its streamlined operations for stronger market performance and shareholder returns.
This move aligns with Kerry Group’s broader strategy to pivot away from consumer-focused dairy operations and deepen its commitment to providing business-to-business nutrition solutions worldwide.
As the transition progresses, the remaining stake in Kerry Dairy Ireland will gradually pass to Kerry Co-op, ensuring the continuity of a key player in Ireland’s agricultural and food processing sectors while allowing Kerry Group to solidify its global leadership in sustainable nutrition solutions.
About Kerry Dairy Ireland
Kerry Dairy Ireland’s extensive network and diverse product offerings make it a vital player in Ireland’s dairy industry. The company’s long-standing relationships with local farmers and commitment to quality have positioned it as a leader in the sector, with a strong foundation for future growth under Kerry Co-op’s stewardship.
This sale signals a new era for both entities, with Kerry Group focusing on global innovation and Kerry Co-op reinforcing its leadership in Irish dairy.
Strategic Milestone
In a statement issued on January 2, 2025, Kerry Group announced that the first phase of the sale was finalized on December 31, 2024. The process included the redemption and cancellation of Kerry Co-op's shareholding of 19,045,396 ordinary shares, replaced by the issuance of 16,187,024 new shares to Co-op members. As a result, Kerry Group’s total issued share capital decreased to 166,440,652 ordinary shares.
“This is a transformative moment for Kerry Group,” said Edmond Scanlon, CEO of Kerry Group. “We are now a pure-play global taste and nutrition company focused on sustainable solutions, while also driving market outperformance, margin progression, and enhanced shareholder returns. I want to express my gratitude to the employees of Kerry Dairy Ireland for their invaluable contributions and wish them continued success in the future.”
Kerry Dairy Ireland’s Role and Impact
Kerry Dairy Ireland has long been a cornerstone of the region’s dairy industry, processing over 1.1 billion liters of milk annually from 2,740 family farms across Munster. The business operates seven production facilities in Ireland and the UK, producing household brands such as Cheestrings, EasiSingles, LowLow, Dairygold, and Charleville.
With forecasted revenue of €1.3 billion for 2024, Kerry Dairy Ireland employs more than 1,500 people and runs 31 agri-services stores across Kerry, Limerick, Clare, and north Cork. The company’s existing leadership, led by CEO Pat Murphy, and all current employees will remain in their roles under the new ownership structure.
Strategic Realignment
The sale underscores Kerry Group’s focus on its global taste and nutrition business, which emphasizes sustainable nutrition and innovation. Listed on the Dublin and London Stock Exchanges, the company aims to leverage its streamlined operations for stronger market performance and shareholder returns.
This move aligns with Kerry Group’s broader strategy to pivot away from consumer-focused dairy operations and deepen its commitment to providing business-to-business nutrition solutions worldwide.
As the transition progresses, the remaining stake in Kerry Dairy Ireland will gradually pass to Kerry Co-op, ensuring the continuity of a key player in Ireland’s agricultural and food processing sectors while allowing Kerry Group to solidify its global leadership in sustainable nutrition solutions.
About Kerry Dairy Ireland
Kerry Dairy Ireland’s extensive network and diverse product offerings make it a vital player in Ireland’s dairy industry. The company’s long-standing relationships with local farmers and commitment to quality have positioned it as a leader in the sector, with a strong foundation for future growth under Kerry Co-op’s stewardship.
This sale signals a new era for both entities, with Kerry Group focusing on global innovation and Kerry Co-op reinforcing its leadership in Irish dairy.
