Revenues at Glanbia division hit €738m
It is the largest dairy ingredients processor in Ireland, assembling and processing 1.6 billion litres of a milk, largely for export, and employs over 500. Included in the proposal are Glanbia’s 45% share of the Corman Miloko joint venture and its 23% share in the Irish Dairy Board.
Taking a 60% stake would cost the society €44.5m, plus its €17.8m share of a fresh equity injection. This would be financed by the sale of 3% of Glanbia plc, and a balancing loan note from the society to the plc of €10.2m. The proposal includes the option for the society to acquire the remaining 40% of the joint venture within six years.
If the joint venture goes ahead, €150m will be invested in a new dairy processing facility at Belview, Co Kilkenny, and a further €30m be invested at Ballyragget and Virginia.
Glanbia group managing director John Moloney said, “The proposed joint venture offers a compelling proposition for all stakeholders for the longer-term, as it facilitates the desired expansion of dairy processing by society members and allows Glanbia to continue to focus on its successful international growth strategy. The abolition of EU milk quotas in 2015 will initiate a new era for milk production and offers increased prospects for the Irish dairy industry through a clear opportunity to expand milk supply. Glanbia already has a number of successful international dairy joint venture operations in the UK, USA and Nigeria.”
