Kerry Group has announced that it has entered into an agreement with Kerry Co-Operative Creameries to sell Kerry Dairy Ireland for €500 million.
Kerry Dairy Ireland is fully owned by Kerry, and consists of dairy consumer products, with a range of brands across cheese, and dairy snacks and spreads retailers in the UK and Ireland.
It also comprises the dairy ingredients business, which is a leading provider of Irish dairy produce including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.
Option Arrangements
Under the proposed transaction, the Co-Op will initially acquire a 70% interest in Kerry Dairy Ireland, while Kerry will retain a 30% interest.
The parties have further agreed to certain call-put option arrangements which will transfer the remaining 30% in Kerry Dairy Ireland to the Co-Op in the forthcoming years
Co-Op members will become direct owners of Kerry shares equivalent to 85% of the Co-Op's current shareholding.
Share Capital
The remaining 15% of the Co-Op's shareholding in Kerry will be redeemed as part of the consideration for the disposal, following which the Co-Op will cease to be a shareholder in Kerry and Kerry’s issued share capital will reduce by approximately 2.9 million shares.
The transaction will involve no public placement of Kerry Group plc shares.
