Glanbia, the food and dairy group, has sold its interests in Cheese Company Holdings for €70 million, less than three years after setting up the joint venture vehicle to target the UK cheese market.
The total consideration involved in the deal is £47.2 million sterling (€70.4 million), said a Glanbia statement.
Glanbia said it had sold a 25 per cent stake and £35 million worth of interest bearing loan notes in Cheese Company Holdings. All interests have been sold to the majority shareholder, Milk Link Limited.
The original deal between Milk Link and Glanbia was announced in February 2004. At that point Glanbia also announced plans to sell 100 per cent of Glanbia Foods to the new joint venture for € 140.1 million.
Glanbia yesterday said it would use the latest proceeds to fund its growth strategy. The sale will result in an exceptional charge of € 9.2 million in the financial statements for the year ended December 31st, relating to the discounting of the loan notes to current values.
Cheese Company Holdings is the largest cheese producer in the UK, with strong positions in cheddar, Stilton and British territorial cheeses, supplying the retail, food service and ingredient sectors.
For the period ended April 1st 2006, it generated profits before tax of £5.6 million. At April 1st 2006, the net assets were £32.2 million.
Commenting on the sale, Glanbia group managing director John Moloney said: "We have had a mutually very satisfactory relationship with Milk Link since 2004 during which the Cheese Company has developed into a strong integrated business.
"We consider now to be an appropriate time to dispose of our remaining interest and to focus on the development of our fast growing international businesses.
"I am pleased that we will continue with key commercial arrangements with Milk Link on a number of fronts going forward."
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)