Kerry Group plc has announced that it has entered into an agreement with Kerry Co-op to sell Kerry Dairy Ireland to the Co-Op for a total expected consideration of €500 million. Kerry Dairy Ireland is fully owned by Kerry and consists of Dairy Consumer Products, with its leading range of brands across cheese, cheese snacks, dairy snacks and dairy spreads which can be found in chilled cabinets across retailers in the UK and Ireland. It also comprises the Dairy Ingredients business, which is a leading provider of Irish dairy ingredients including functional dairy proteins, nutritional dairy bases and cheese systems, along with the provision of related agribusiness products and services.
Pursuant to the Share Exchange Steps the Co-Op members will become direct owners of Kerry shares equivalent to 85% of the Co-Op’s current shareholding. The remaining 15% of the Co-Op’s shareholding in Kerry will be redeemed as part of the consideration for the Disposal, following which the Co-Op will cease to be a shareholder in Kerry and Kerry’s issued share capital will reduce by approximately 2.9 million shares. The transaction will involve no public placement of Kerry Group plc shares.
.James Tangney, Chairman of Kerry Co-Op commented: “We are very pleased to have reached an agreement that will ultimately deliver full ownership of one of the leading dairy businesses in the country, while also, in effect, releasing c.85% of Kerry Co-Op’s Kerry Group shares into the hands of our members to be retained or sold by each of them at a time of their choosing. Kerry Co-Op and Kerry Group have a shared heritage that has helped create value, pioneer change and shape the dairy industry. As direct shareholders in the plc, members will continue to gain from the Group’s progress and, in tandem, the Co-Op will focus on ensuring Kerry Dairy Ireland becomes a platform for future growth.”
An extraordinary general meeting of Kerry is expected to take place on Thursday 19 December 2024 for Kerry shareholders to vote on the Proposed Transaction. A notice of the extraordinary general meeting and shareholder circular with further details on the Proposed Transaction and proposed shareholder resolutions is expected to be published on or around Monday 25 November 2024.