Kerry Group Sells Majority Stake in Kerry Dairy Ireland to Co-Op in €500 Million Deal

Ireland 14.11.2024

Source: DairyNews.today

Kerry Group plc has entered a landmark agreement to sell Kerry Dairy Holdings (Ireland) Limited to Kerry Co-Operative Creameries Limited for an anticipated consideration of €500 million. The deal involves an initial transfer of a 70% stake to the Co-Op, with Kerry Group retaining 30% ownership. Over the coming years, the remaining stake will transition to the Co-Op through agreed call-put options.

Strategic Realignment for Kerry Group

This transaction marks a pivotal step in Kerry Group’s journey toward becoming a fully dedicated global taste and nutrition solutions company. Building on its recent divestments, including the Consumer Foods Meats & Meals and Sweet Ingredients portfolios, Kerry aims to consolidate its focus on high-growth areas such as health, food protection, and sustainability.

Edmond Scanlon, CEO of Kerry Group, noted: "This proposed transaction is a transformative moment in Kerry’s 50-year history. It underscores our strategy to align business development with customer needs while positioning us as a global leader in taste and nutrition solutions."

A New Era for Kerry Dairy Ireland

Kerry Dairy Ireland, currently fully owned by Kerry Group, comprises two major segments:

Dairy Consumer Products, featuring leading brands in cheese, cheese snacks, dairy spreads, and chilled dairy snacks available across the UK and Ireland.
Dairy Ingredients, providing Irish dairy solutions such as functional proteins, nutritional bases, and cheese systems, alongside agribusiness services.

Post-acquisition, Kerry Dairy Ireland will evolve into a vertically integrated dairy processor, connecting consumer products and high-value ingredients more closely with Ireland’s dairy farmers and broader ecosystem.

James Tangney, Chairman of Kerry Co-Op, highlighted: "This deal not only secures full ownership of a leading dairy business but also releases approximately 85% of Kerry Co-Op’s shares in Kerry Group to our members, enabling them to benefit from both the Co-Op’s and the Group’s growth."

Operational Transition and Ecosystem Impact

To ensure operational continuity, Kerry Group will provide transitional services such as IT, purchasing, and corporate support to Kerry Dairy Ireland during the transition period. The move is expected to strengthen Kerry Dairy Ireland’s position as one of the largest dairy processors in Ireland, creating a platform for future growth while supporting the broader Irish dairy industry.

The agreement, which builds on the long-standing partnership between Kerry Group and Kerry Co-Op established in 1974, is subject to regulatory approvals and stakeholder engagement. Once completed, the transaction will position both entities for success, delivering enhanced value for Kerry Group shareholders and Co-Op members.