Kerry Group divests its dairy business Kerry Dairy Ireland to Kerry Co-Operative Creameries for £414.6m.
- The transaction marks Kerry’s strategic shift towards a taste and nutrition solution focus.
- Kerry Dairy Ireland’s previous year sales stood at £1.063bn with an EBITDA of £44.2m.
- The deal unfolds in two phases, initially transferring 70% ownership to Kerry Co-Op.
- Kerry Group aims to transition into a pure business-to-business entity.
Kerry Group has reached an agreement to sell its Irish dairy business, Kerry Dairy Ireland, to Kerry Co-Operative Creameries for £414.6 million (€500 million). This strategic divestiture is in line with Kerry Group’s ongoing efforts to concentrate on becoming a leading global taste and nutrition company.
Last year, Kerry Dairy Ireland reported impressive net sales of £1.063 billion (€1.283 billion), accompanied by an EBITDA of £44.2 million (€53.4 million). The transaction is structured to occur in two distinct phases: initially, Kerry Co-Op will acquire a 70% stake in Kerry Dairy Ireland. Subsequently, there will be a provision for Kerry Co-Op to purchase the remaining 30% over the coming years, transitioning to full ownership.
Edmond Scanlon, the chief executive officer of Kerry Group, articulated that this transaction is a reflection of Kerry’s 50-year journey of continuous development and aligns with their strategic goals. The dedication of Kerry’s workforce has been instrumental in positioning both businesses for future success.
Once the sale is completed, Kerry Group will streamline its operational focus to emerge as a dedicated business-to-business supplier in the taste and nutrition sector. This transformation is part of a broader portfolio evolution strategy that includes initiatives in health, food protection, and preservation, as well as enzyme development. In 2021, Kerry Group divested its consumer food meats and meals division to Pilgrim’s Pride Corporation for £704 million (€819 million).
This sale represents a pivotal step in Kerry Group’s strategic transformation journey towards a more focused business model.
