Kerry Group has decided to sell its Irish dairy division, Kerry Dairy Ireland, for £414.6 million (€500 million) to Kerry Co-Operative Creameries. This strategic move is part of a broader transformation towards becoming a global taste and nutrition solutions company.
The transaction involves a phased approach where Kerry Co-Op will first acquire 70% of Kerry Dairy Ireland. Subsequently, they will have the option to purchase the remaining 30% over the next few years, eventually gaining complete ownership. This development is expected to streamline Kerry Group’s focus on its core business activities.
Kerry Dairy Ireland has been a notable player in the dairy market, producing widely consumed products like cheese and spreads in the UK and Ireland. Last year, the business reported net sales of £1.063 billion (€1.283 billion) with an EBITDA of £44.2 million (€53.4 million).
Edmond Scanlon, CEO of Kerry Group, 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.” He further emphasised that post-sale, Kerry will become “a pure play global business to business taste and nutrition company, with sustainable nutrition at its core”.
The sale is in line with Kerry Group’s ongoing strategic shift, which has included divesting its consumer foods’ meats and meals arm to Pilgrim’s Pride Corporation in 2021 for £704 million (€819 million).
Kerry Group’s recent business decisions reflect its commitment to aligning its portfolio with long-term growth and sustainability goals. This shift towards focusing on taste and nutrition solutions reflects broader industry trends favouring health and sustainability.
The sale of Kerry Dairy Ireland marks a pivotal point in Kerry Group’s evolution as it aims to concentrate on global expansion in taste and nutrition sectors. This decision is set to enhance profitability and deliver sustained market performance.
