Glanbia to sell dairy business

Food group Glanbia today announced that it has conditionally agreed to sell its Irish Dairy and Agri Businesses to Glanbia Co-operative Society for around €340m.

The co-op is currently the largest shareholder in the Dublin-listed company but will substantially reduce its stake if, as expected, the deal is approved by the society's members next month.

In a statement Glanbia said its Board believed that the sale will strengthen Glanbia's balance sheet and provide financial flexibility to allow the group to develop its international business operations further “and fulfil its growth potential in the nutritional ingredients and cheese markets”.

"In a changed global dairy market environment, the time and opportunity is now at hand to recognise and embrace the need for transformationm” said group Managing Director John Maloney.

“This transaction provides the prospect of reshaping the business and unlocking growth and development potential for both the Society and the Company.

"For Glanbia it has compelling strategic logic and creates a focused business with a well established growth strategy, underpinned by improved financial flexibility. For the Society, achieving full control of the Irish Dairy and Agri Businesses, will create a dynamic organisation focused on driving growth and development for farmer members."

Glanbia’s Irish Dairy and Agri Businesses comprise three principal business units, Dairy Ingredients Ireland, Consumer Products and Agribusiness, as well as Glanbia Estates, Group Business Services and Irish Joint Ventures and Associates.