Kerry Group Finalizes First Phase of Dairy Sale to Kerry Co-Op

Kerry Group has successfully finalized the first phase of its sale of Kerry Dairy Ireland to Kerry Co-Operative (Co-Op) Creameries. This marks a major step in the company’s ongoing transformation and streamlining process.

Details of the Sale

• Phase One Complete: In this initial phase, the Co-Op acquired 70% of Kerry Dairy Ireland.
• Phase Two: The second phase will give the Co-Op the option to acquire the remaining 30% of Kerry Dairy Ireland, enabling it to take full ownership of the dairy manufacturer.

Financial Performance

Kerry Group recently reported net sales of £1.063 billion (€1.283 billion) and an EBITDA of £44.2 million (€53.4 million) for the last fiscal year, reflecting the scale of its dairy business. The sale supports Kerry Group’s broader strategy to focus on its core business of taste and nutrition solutions.

Strategic Transformation

This sale is part of Kerry Group’s ongoing transformation into a global business-to-business taste and nutrition company. The group has been evolving by shifting away from consumer food operations to focus on more specialized segments such as:

• Proactive health
• Food protection and preservation
• Enzyme platforms

In line with this strategy, Kerry Group dairy sale sold its Consumer Foods meats and meals division to Pilgrim’s Pride Corporation for £704 million (€819 million) in 2021.

Leadership Statement

Edmond Scanlon, CEO of Kerry Group, expressed that the completion of this phase marks a significant milestone for the company. He emphasized that the shift to a pure-play nutrition business is aligned with Kerry Group’s goals of strong market performance, margin growth, and increased shareholder returns. He also acknowledged the contribution of the Kerry Dairy Ireland employees and wished them well for the future.

This move underscores Kerry Group’s commitment to positioning itself at the forefront of the global nutrition sector, while also optimizing its financial and operational strategies.

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