Kerry Group has announced that it has completed the first phase of selling its dairy business to Kerry Co-op.
Shareholders in Kerry Co-op, and then Kerry Group, both voted to approve the €500 million deal at separate EGMs last month.
The sale of Kerry Dairy Ireland to the co-op was announced in November, and was then approved by votes of Kerry Co-op and Kerry Group shareholders at separate EGMs last month.
Kerry Group has now announced that the first phase of the transaction has been completed, as of 31st December.
This first phase means that Kerry Co-op now controls 70% of Kerry Dairy Ireland, with Kerry Group retaining a 30% stake for the moment; this will be disposed of in full by 2035 at the latest.
Also as part of the first phase, Kerry Group redeemed and cancelled Kerry Co-op’s 11% shareholding in the company, equal to just over 19 million ordinary shares.
Over 16 million Kerry Group shares (around 85% of the Co-op's shareholding) have now been issued to Kerry Co-op members, and the rest of the value of Kerry Co-op’s shareholding is being used to finance its acquisition of the dairy business.
CEO of Kerry Group, Edmond Scanlon, said this marks a significant step in Kerry’s history, becoming a global business-to-business taste and nutrition company.
He also recognised the Kerry Dairy Ireland employees for their contribution to the company over the years, and wished them the very best in the future.
