Kerry Group to sell US$530M dairy business to fully focus on taste, nutrition
IRELAND – Kerry Group has announced it will sell its Irish dairy business, Kerry Dairy Holdings (Ireland) Limited, to Kerry Co-Operative Creameries Limited.
The sale, valued at around US$530M represents a major strategic shift for Kerry as it pivots to concentrate on taste and nutrition products.
The divestment includes Kerry Dairy Ireland’s wide range of dairy brands and products, such as Dairygold and Cheestrings, which have a strong foothold in the UK and Irish markets.
In 2023, the dairy division generated approximately $1.35 billion in revenue, though this was a decrease from US$1.63 billion in 2022.
Similarly, its EBITDA dropped from US$75 million to US$57 million over the same period.
As part of the transaction terms, Kerry Group will initially retain a 30% stake in the dairy business, with plans for the co-operative to acquire full ownership in a phased approach.
The Co-Op is expected to gain a 70% controlling interest initially, with the complete transition to follow over the coming years.
This gradual transfer is intended to ensure operational continuity as the Co-Op integrates Kerry Dairy Ireland into its broader business framework.
Kerry Group’s primary aim in this sale is to focus on expanding its presence in the taste and nutrition sectors, which include products for the food, beverage, and pharmaceutical industries.
For the Co-Op, this acquisition consolidates its role within Ireland’s dairy industry and enhances its ability to support local dairy farmers and the agricultural community.
This integration is expected to strengthen Kerry Dairy Ireland’s market position, allowing it to pursue new opportunities in the dairy sector.
Financially, the transaction is anticipated to improve Kerry Group’s performance metrics, including its EBITDA margin and revenue growth profile.
Kerry Group plans to allocate the proceeds from the sale for general corporate purposes.
Additionally, a US$53 million fund will be set up to resolve ongoing disputes between Kerry Co-Operative Creameries Limited and some milk suppliers.
Separately, Kerry Group recently acquired LactoSens technology from DirectSens, a lactose detection tool that complements its enzyme solutions.
Last month, Kerry also introduced an Egg Reduction Guide, aimed at helping manufacturers adjust recipes in response to price fluctuations and new EU animal welfare rules.
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