FDBusiness.com

Members of Glanbia Co-operative Society have voted in favour of entering into a dairy processing joint venture with Glanbia plc, the global nutritional solutions and cheese group. The joint venture, to be named Glanbia Ingredients Ireland will comprise the business and operations of Glanbia plc’s Dairy Ingredients Ireland business unit.

DII is the largest dairy ingredients processor in Ireland, assembling a milk pool of 1.6 billion litres and processing it into about 180,000 tonnes of dairy ingredients largely for export to over 50 countries worldwide. In 2011, DII generated revenue of Eur738 million, operating profit of Eur33 million and EBITDA of Eur44 million.

Glanbia Co-operative Society will own 60% of Glanbia Ingredients Ireland and Glanbia plc the remaining 40%. Glanbia plc shareholders will vote on the proposal at an extraordinary general meeting on Tuesday, 20 November 2012. If approved by Glanbia shareholders, the joint venture transaction is expected to be completed on 25 November, 2012.

Subject to the joint venture transaction being approved, Glanbia Co-operative Society will seek member approval to reduce its shareholding in Glanbia plc from 54.4% to 41.4%.

John Moloney, group managing director of Glanbia plc, comments: “The joint venture presents substantial strategic opportunity for both Glanbia and the Society. From a Society perspective, it creates a strong platform from which to grow milk volumes and capture the benefits arising from increased milk production and processing post the abolition of milk quotas in 2015. For Glanbia plc, the joint venture enables it to continue its successful international growth strategy and maximise value for all shareholders.”