Glanbia to sell 60% stake in Irish dairy business

Glanbia is to sell a 60% stake in its Irish dairy business, to Glanbia Co-operative Society for €112m.

Glanbia Foods Ireland is currently 100% owned by Glanbia and is comprised of two business units, Glanbia Consumer Foods Ireland and Glanbia Agribusiness.

Before the deal is completing Glanbia will restructure the company to ensure that all of the assets related to the two business units are transferred to Glanbia Foods Ireland.

Glanbia Co-op will buy the 60% interest indirectly by investing further in Glanbia Ingredients Ireland, a joint venture between the companies, which will acquire 100% of Glanbia Foods Ireland from Glanbia.

After completion of the deal, of the Proposed Transaction Glanbia Ingredients Ireland will be owned 40% by Glanbia and 60% by the Glanbia Co-op and will be known as Glanbia Ireland.

While this is the same percentage shareholdings that each company currently holds in Glanbia Ingredients Ireland, it represents an expansion of this existing joint venture as it will encompass the existing businesses of Glanbia Ingredients Ireland and Glanbia Foods Ireland, including Glanbia Consumer Foods Ireland and Glanbia Agribusiness.

The deal will allow Glanbia e to focus on its global nutrition businesses, Glanbia Performance Nutrition, and Glanbia Nutritionals as well as other strategic joint ventures.