FDBusiness.com

Glanbia to Sell 60% of Dairy Ireland

 Breaking News
  • Autumn Chill Puts Sunday Lunch Back on the Menu For UK Shoppers UK shoppers have returned to seasonal favourites as supermarket spending cools off, according to the latest figures from Kantar Worldpanel, for the 12 weeks to 7 October 2018. Overall sales grew 3.2% compared to the same 12 weeks last year. Though this is a slight slowdown from the highs reached during 2018’s hot summer, sales [...]...
  • Müller Milk & Ingredients Completes Integration and Appoints CFO Brian Watson has been appointed as Chief Finance Officer at Müller Milk & Ingredients (MMI). He joins the business from Marmon, a $7.7 billion Berkshire Hathaway company operating in the supermarket and food service sector. The appointment comes as MMI confirms completion of the biggest integration the UK dairy industry has ever seen – merging [...]...
  • Emmi Leads by Example As a manufacturer of speciality cheeses, Swiss dairy group Emmi is now setting an example for environmental protection by investing in a high-performance photovoltaic system at its Platteville site in the state of Wisconsin in the US. With 1,600 panels installed on the roof, the system can cover 15% of the company’s electricity requirement. The [...]...
  • Kerry Group Commits €1 Million to Bring RAIN Programme to West Africa Kerry Group has extended its partnership with Concern Worldwide through a 4-year project to improve food security and nutrition in Niger. The Realigning Agriculture to Improve Nutrition (RAIN) programme will make lasting improvements to food security, nutrition and the overall livelihoods in the Tahoua Region of Niger. This second phase of the RAIN programme will [...]...
  • Greencore to Divest US Business in $1 Billion Deal Greencore Group, the Irish and UK convenience food business, has agreed to sell its entire US business to an affiliate of Hearthside Food Solutions for US$1.075 billion (£817 million) on a cash and debt-free basis. Hearthside is a major US contract food manufacturer with a heritage in US food industry outsourcing. The disposal will leave [...]...

Glanbia to Sell 60% of Dairy Ireland

Glanbia to Sell 60% of Dairy Ireland
April 27
10:01 2017

Glanbia plc, the global nutrition group, has agreed to sell 60% of its Dairy Ireland segment to Glanbia Co-op. Dairy Ireland is currently 100% owned by Glanbia plc and is comprised of two business units, Glanbia Consumer Foods Ireland and Glanbia Agribusiness.

In 2016, Dairy Ireland generated revenue of €616.2 million, earnings before interest, tax and amortisation (EBITA) of €30.7 million and an EBITA margin of 5.0%. In return for its 60% stake in Dairy Ireland, Glanbia plc will receive €112 million together with the equivalent to 100% of the amount of the working capital in Dairy Ireland at completion. The average three year working capital in Dairy Ireland over 2014, 2015 and 2016 was approximately€92.5 million.

Siobhán Talbot, group managing director of Glanbia.

Siobhan Talbot, group managing director of Glanbia, comments: “This strategic initiative remains on track to be completed by mid-year. Once completed it is planned to integrate Dairy Ireland with our associate, Glanbia Ingredients Ireland DAC to form ‘Glanbia Ireland’, which will be a leading Irish food business. This will bring together Glanbia Group’s Irish dairy and agri-businesses under single ownership and will enable Glanbia to continue to focus on its two growth platforms of Glanbia Performance Nutrition and Glanbia Nutritionals.”

Glanbia Ingredients Ireland DAC (GIID) was established in 2012 as a dairy processing joint venture which is owned 40% by Glanbia plc and 60% by Glanbia Co-op. After completion of the proposed transaction GIID will be owned 40% by Glanbia plc and 60% by Glanbia Co-op and will be known as Glanbia Ireland. While this is the same percentage shareholdings that each company currently holds in GIID, it represents an expansion of the existing joint venture since it will encompass the existing businesses of GIID and Dairy Ireland, including Glanbia Consumer Foods Ireland and Glanbia Agribusiness.

The deal will create an integrated Irish-based business of scale which is the largest dairy processor in Ireland. It is envisaged that GIID will embark on a €250 million to €300 million strategic capital investment programme in the period 2017 to 2020. This investment programme is intended to increase capacity to support the stated growth ambitions of the GIID milk suppliers and optimise value-adding opportunities. The financing of the investment will substantially be sourced from dedicated bank facilities in GIID. The new arrangement will reduce Glanbia plc’s working capital funding requirements.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements