Dairy Crest Reduces stake in Wexford Creamery
Dairy Crest has reduced its stake in its Irish dairy joint venture, Wexford Creamery, from 80% to 30%. Wexford Milk Producers, Dairy Crest’s partner in Wexford Creamery, has increased its stake from 20% to 70% after the approval of its farmer members for the transaction.
The deal is in line with Dairy Crest’s strategy of concentrating on developing its key brands and further reducing its exposure to volatile commodity markets. The UK dairy group will retain a minority stake in Wexford Creamery and will continue to provide a range of services to the creamery, including packing and distribution, and will also sell Wexford branded cheese in the UK for a transitional period.
Dairy Crest will use the cash proceeds from the transaction of around Eur9m to repay bank debt.
