Kerry Group plc has entered into an agreement with Kerry Co-Operative Creameries Ltd. to sell Kerry Dairy Holdings (Ireland) Ltd. to the Co-Op for a total expected consideration of 500 million euros. Kerry Dairy Ireland is fully owned by Kerry.

Kerry Dairy Ireland consists of Dairy Consumer Products, with its range of brands across cheese, cheese snacks, dairy snacks and dairy spreads that can be found in chilled cabinets across retailers in the UK and Ireland. It also comprises the Dairy Ingredients business, which is a provider of Irish dairy ingredients including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.

Pursuant to the Share Exchange Steps, the Co-Op members will become direct owners of Kerry shares equivalent to 85% of the Co-Op’s current shareholding. 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.

The transaction will result in two businesses, Kerry Group and Kerry Dairy Ireland, each better positioned to focus on their respective strategies and capital allocation priorities: 

• Kerry Group: A global provider of taste and nutrition solutions for the food, beverage and pharmaceutical markets.
• Kerry Dairy Ireland: A leading Irish provider of dairy consumer products and dairy ingredients.
  

Kerry to Become a Pure Play Taste and Nutrition Company

“The Proposed Transaction represents an important step in Kerry’s evolution to becoming a fully dedicated global taste and nutrition solutions company. This follows the significant portfolio development over recent years including the build out of its proactive health, food protection and preservation, and enzymes platforms, while also divesting of the Consumer Foods Meats & Meals business and the Sweet Ingredients portfolio. The Proposed Transaction will result in greater portfolio clarity, a more simplified business structure, and increased capital deployment focus across Kerry’s core taste and nutrition business, while further strengthening Kerry’s ability to execute against its strategic priorities,” Kerry said.