Glanbia Completes Sale of 60% Interest in Dairy Ireland Business
Glanbia plc, the global nutrition group, has completed the sale of a 60% interest in its Dairy Ireland business to Glanbia Co-operative Society. Dairy Ireland 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.
Dairy Ireland will now be combined with Glanbia Ingredients Ireland (GII), which was established in 2012 as a dairy processing joint venture owned 40% by Glanbia plc and 60% by Glanbia Co-op. The enlarged GII will be owned 40% by Glanbia plc and 60% by Glanbia Co-op and will be known as Glanbia Ireland. The move represents an expansion of the existing joint venture since it will encompass the existing businesses of GII 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 Glanbia Ireland will embark on a €250 million to €300 million strategic capital investment programme in the period 2017 to 2020.
