Kerry Group has announced it’s agreed to sell its dairy division to Kerry Co-op for €500 million.
The sale will take place in two phases; the first worth around €350 million with the co-op initially acquiring 70% of Kerry Dairy Ireland by the end of next January, with Kerry retaining a 30% interest.
The second phase will see the remaining 30% in Kerry Dairy Ireland transferred to the co-op in the period up to 2035.
The co-op currently holds a shareholding in Kerry Group of around 11%, and the proposed share exchange will see 85% of these shares held directly by co-op members, with the rest used to finance the deal.
The transaction will only proceed if approved by the majority of the co-op's shareholders present at a special general meeting in December.
For the fiscal year 2023, Kerry Dairy Ireland generated revenue of over €1.2 million.
