EUROPE – Leprino Foods, an American multinational cheese manufacturing company, is set to acquire full ownership of Glanbia cheese, its joint venture with Glanbia PLC, an Ireland-based nutrition company.
Glanbia cheese, a subsidiary of Glabnia PLC, is reputed to be a leading mozzarella maker in Europe with three manufacturing facilities; Portlaoise in Ireland, Llangefni in Wales and Magheralin in Northern Ireland.
This acquisition will encompass Glanbia Cheese UK and Glanbia Cheese EU in a strategy to allow the company to focus on its core business of sports nutrition and wellness.
As per the terms of the deal, Glanbia PLC will receive €160 million (US$170.4M) with the possibility of an additional €25 million over the next three years, depending on the performance of the business.
The acquisition terms indicate that the existing teams across these facilities will continue to manage the business, reporting to CEO Paul Vernon, without disrupting day-to-day operations.
Glanbia group managing director, Siobhán Talbot, said, “Glanbia and Leprino Foods have enjoyed many years of successful partnership since our first joint venture was established.
The two companies joined forces in 2000.
“As we have evolved our portfolio at Glanbia in recent years, we have become very focused on our nutrition strategy, serving consumer health and wellness categories through our brands and ingredient solutions business.”
Paul Vernon also expressed how Glanbia will fit perfectly within Leprino foods.
He said, “We are excited by this proposed transaction which will see us align our business with Leprino Foods, the largest and most successful mozzarella business in the world”
Last May, Germany-based activist investor Clearway Capital, which had taken a stake in Glanbia earlier in the year, urged the company to sell its stake in the cheese business, suggesting that the move would help near-double the company’s value.
Leprino Foods, on the other hand, is an American leader in cheese manufacturing with some referring to it as the world’s largest manufacturer of mozzarella cheese.
The company was founded by Mike Leprino in 1950 as a family-owned market selling grocery items and handmade cheese in Denver, USA and has amassed immense growth since then.
It currently employs about 5,000 people across 55 countries and posted a US$3.5 billion revenue for the financial year 2022.
Regarding the deal, Mike Durkin, president and CEO of Leprino Foods, said, “We look forward to working with Paul Vernon and the local team to ensure a seamless transition for our employees, customers and suppliers.”
The transaction is expected to close in the first half of 2023 and is subject to the completion of due diligence and execution of definitive agreements.
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