Kerry Group has completed the sale of its Irish dairy business, Kerry Dairy Ireland, to Kerry Co-Operative Creameries for £414.6 million (€500 million).
This significant transaction involves Kerry Dairy Ireland, known for its production of well-loved dairy products such as cheese and spreads that are distributed in both the UK and Ireland. In the previous year, this dairy segment reported net sales amounting to £1.063 billion (€1.283 billion) and an EBITDA of £44.2 million (€53.4 million).
The sale is structured in stages, with Kerry Co-Op initially acquiring a 70% stake. Over the following years, the cooperative has the option to purchase the remaining 30%, ultimately taking full control of the dairy business. This phased approach allows for a smooth transition, providing Kerry Co-Op the opportunity to solidify its influence in the dairy sector progressively.
Edmond Scanlon, the Chief Executive Officer of Kerry Group, remarked upon the transaction, highlighting its importance in the company’s long-term strategy. He stated, ‘The proposed transaction represents a significant step in Kerry’s 50-year journey. 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.’
Upon the completion of this sale, Kerry Group will shift its focus entirely to becoming a leading global business in taste and nutrition, emphasising sustainable nutrition. This shift aligns with their financial aspirations of outperforming the market, enhancing profit margins, and increasing returns for shareholders.
Kerry Group has been strategically transforming over the years, aiming to specialise in taste and nutrition solutions globally. This decision follows various portfolio changes, including the divestment of its meat and meal consumer foods arm to Pilgrim’s Pride Corporation in 2021 for £704 million (€819 million).
This transaction marks a pivotal point in Kerry Group’s transformation strategy, steering the company towards exclusive focus on global taste and nutrition solutions.
