Glanbia sells cheese company

Dairy foods and nutritional ingredients group Glanbia has sold its 25% interest in The Cheese Company (TCCH), to majority shareholder Milk Link for €70.41m.

Glanbia said the proceeds of the sale would be used to fund the growth strategy of the group.

The sale will result in an exceptional charge of €9.2m in Glanbia's end-of-year statement, relating to the discounting of the 2008 - 2018 loan notes to current values.

TCCH is the largest cheese producer in the UK, with strong positions in cheddar, stilton and British territorial cheeses, supplying the retail, food service and ingredient sectors.

For the period to April 1, 2006, TCCH generated before-tax profits of €8.3m with net assets of €47.9m.