Glanbia’s Food Ingredients section ‘worth €150m’

GLANBIA’S Food Ingredients Ireland business is worth about €150m if valued similarly to Wexford Creamery, where a partial buyout has been confirmed, according to Goodbody Stockbrokers.

Wexford had 2009 sales of €56m. With Wexford Co-op paying €9m to buy back 50% of the company from Dairy Crest, the purchase price is equivalent to 16% of sales – which values Glanbia’s Food Ingredients Ireland at €150m. Dairy analysts at Goodbody said their sum-of-the-parts valuation of Food Ingredients Ireland was €100m, and the 50% higher valuation implied by the Wexford deal reaffirmed inherent value in this lower margin part of Glanbia’s operations. The higher valuation may also determine whether or not Glanbia plc will repeat its offer to sell Dairy Ingredients Ireland, Consumer Products and Agribusiness, Glanbia Estates, Group Business Services and Irish Joint Ventures and Associates to Glanbia Co-op. This €343m deal collapsed in May when co-op member agreement was just short of the required 75%.