Kerry Co-Operative Creameries, the Irish dairy co-op that’s also Kerry Group’s largest shareholder, has acquired a 70% stake in Kerry Dairy Ireland following the completion of phase 1 of the consumer dairy business’ disposal.
As part of the transaction, which closed on December 31, 2024, Kerry (the Group) redeemed and cancelled the co-op’s entire shareholding and reduced the company’s issued share capital by around 2.9 million shares.
As per the agreement terms announced in November 2024, the Group will retain a 30% stake – which the co-op may purchase in the coming years – for continuity reasons.
But the deal – which both the Group’s board and the co-op’s members formally ratified last month – enables Kerry to focus on its more profitable taste and nutrition solutions business. It will also no longer consolidate Kerry Dairy Ireland in its Group financial statements and will record its 30% interest as an investment.
The consideration for the Phase 1 transaction are an estimated €350m, and the total consideration is for €500m.
Kerry and the co-op have also agreed to set up a €50m fund to settle the ongoing milk price dispute between the Group and the co-op’s milk suppliers, which would exonerate Kerry from liability for future claims from suppliers under the milk supply agreement, which is in place until 2026.
Edmond Scanlon, Kerry Group CEO, said the phase one competition marks ‘a significant step in Kerry’s history, becoming a pure play global business to business taste and nutrition company, with sustainable nutrition at its core, while also supporting our financial objectives of continued market outperformance, strong margin progression, and delivering greater returns for our shareholders’.
“I would like to recognise the Kerry Dairy Ireland employees for their contribution to Kerry over the years and wish them the very best in the future.”
