Glanbia completes sale of majority interest in Dairy Ireland

Food group expects dilution of earnings per share as a result of the sale

The Glanbia Co-Op Special General Meeting in May when the deal was approved by shareholders. (Photograph: Dylan Vaughan)

The Glanbia Co-Op Special General Meeting in May when the deal was approved by shareholders. (Photograph: Dylan Vaughan)

 

Global nutrition group Glanbia plc has completed the sale of a 60 per cent interest in the company’s Dairy Ireland segment to Glanbia co-op, the group’s largest shareholder.

The Kilkenny-based food group sees Glanbia’s Dairy Ireland consumer foods and agribusiness units hived off into Glanbia Ireland.

In April, Glanbia said the Dairy Ireland transaction would dilute adjusted earnings per share by between 5 and 7 per cent on a full-year basis.

In the three months to the beginning of April the company said total group revenue increased by 7.7 per cent on a constant currency basis compared with the same period last year.

Under the deal the co-op has had to reduce its stake in the plc in order to fund the acquisition of a controlling stake in the new dairy business, which will control brands including Avonmore, Kilmeaden and Premier.

Final consideration payable to Glanbia is subject to finalisation of the value of actual working capital in Dairy Ireland when the accounts, which are currently being prepared, are completed.