It's expected that the agreed price for a 40% stake will be paid in one sum.
Glanbia plc (“Glanbia” or the “PLC”) and Glanbia Co-operative Society Limited (“Glanbia Co-op” or the “Co-op”) have today announced they have signed a non-binding memorandum of understanding (“MOU”) for the sale of the PLC’s 40% interest in Glanbia Ireland DAC (“Glanbia Ireland” or “GI”) to Glanbia Co-op (the “Proposed Transaction”) for a purchase price of €307 million.
Commenting today, Donard Gaynor Chairman of Glanbia plc said:
“Glanbia Ireland has a successful heritage, and for many years we have valued the partnership with Glanbia Co-op in creating a strong business under our joint stewardship. This is the right time for the Proposed Transaction. The Co-op is the right owner to continue the strategic development of Glanbia Ireland for the benefit of the Co-op’s members, and the PLC can continue to maximise the opportunities for its own business in the post-Covid environment, with our focus on health, wellbeing and nutrition.”
Commenting today, Siobhan Talbot, Group Managing Director of Glanbia plc said:
“Today’s announcement represents the next stage of our transformation journey following many years of successful collaboration with Glanbia Co-op as joint venture partners in Glanbia Ireland. If approved, the Proposed Transaction will continue the alignment of our portfolio to our strategy, which is focused on driving growth through our market leading positions as a brand owner and ingredient solutions provider, playing into strong underlying consumer health and wellness trends. We expect to deploy the capital received from the Proposed Transaction in investment to drive further growth and to return capital to shareholders.
Strategic rationale and use of proceeds
The Proposed Transaction is consistent with the PLC’s strategy to focus on its two growth platforms, Glanbia Performance Nutrition (“GPN”) and Glanbia Nutritionals (“GN”), as well as strategic joint ventures. The PLC will increasingly focus on its global nutrition strategy as a brand owner and provider of value added nutrition solutions, serving high growth markets.
The proceeds from the proposed transaction will be primarily invested in growth opportunities with up to 50% of the proceeds being returned to shareholders via a share buyback.
IFA President Tim Cullinan said the announcement that Glanbia Co-op is taking full control of Glanbia Ireland is a significant step for the business.
“This is a complex financial arrangement that will require careful scrutiny before members vote on the proposals. I would ask that Glanbia provide every opportunity for this plan to be discussed ahead of the SGM that will have to take place,”
IFA will be seeking a meeting with Glanbia as soon as possible to discuss the proposals.
The IFA President said it’s important that suppliers will see benefits from this deal, if it goes ahead.
“Glanbia has a three billion litre milk pool and takes in 270,000 tonnes of grain each year. It’s a major processor and buyer of what farmers produce so they should be a market leader in price,”
Calls Made For Greater Police Presence In Offaly Town
Quarter Of Residents In Laois IPAS Centre Granted Permission To Stay In Ireland
Man Arrested After Attack On Offaly Garda Station
Gardaí Investigating Criminal Damage At Midlands Pharmacy
Midlands County Hosts Water Safety Awards Ceremony
Surge In Respiratory Illness Cases Forces Visiting Restrictions For Midlands Hospital
Midlands MEP Warns Of EU Meat Price Collapse Ahead Of Mercosur Protest
Offaly TDs Raise Community Policing Concerns Following Arson Attack
Fianna Fáil Warns Ireland Must Stay Competitive Amid Minimum Wage Increase
Uisce Eireann Confirms Completion Of Offaly Works
Man Hospitalised With Serious Injuries Following Offaly Crash
Biodiversity Children's Book Launches In Midlands
Over €3.8m In IT And Minor Works Grants Going To Midlands Schools
Midlands Property Prices Continuing To Rise
Mercosur Vote Down To The Wire - Midlands MEP
Offaly Community Sports Facility To Remain Closed Over Christmas
Westmeath Security Expert Welcomes Gardai Training For EU Presidency
Lower Childcare Fee Caps Could Lead To Closures - FECP
Gardai Investigating Potentially Suspicious Approach Of Child In Laois
Midlands Animal Rescue Shelter Unequivocally Against Fox Hunting