Glanbia plc has announced that it has signed legal agreements to dispose of its 40% holding in Glanbia Ireland to Glanbia Co-op for €307 million.
The transaction, subject to certain approvals and conditions, is expected to close in the first half of 2022.
The proposed transaction will allow the company to focus on its global nutrition business via its platforms, Glanbia Performance Nutrition (GPN) and Glanbia Nutritionals (GN), as well as strategic joint ventures.
Besides, the company will use the proceeds from the proposed transaction to drive further growth and return up to 50% of the capital to shareholders via a share buyback programme.
The Proposed Transaction
The consideration payable to Glanbia plc will be paid in cash and is not subject to any adjustment mechanisms post completion of the proposed transaction.
The Co-op has informed the PLC that it is in the position, if required, to fund the consideration through a combination of existing cash resources and debt facilities.
In August, Glanbia reported strong revenue growth and margin improvements that were ahead of expectations in the first half of its financial year.
Glanbia Ireland
Glanbia Ireland is a joint venture owned 60% by Glanbia Co-op and 40% by the PLC and is the largest milk processor and grain buyer in the country.
It produces a range of value-added dairy ingredients and consumer products and sells farm inputs.
Glanbia Ireland operates 11 processing plants, 52 agri retail branches and employs more than 2,000 people.
© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
