Glanbia has announced its intention to sell its 40% holding in Glanbia Ireland to Glanbia Co-operative Society for €307 million.
The purchase is consistent with Glanbia’s strategy to focus on its two growth sectors, Glanbia Performance Nutrition and Glanbia Nutritionals, as well as other strategic joint ventures.
The proceeds from the proposed transaction will be invested in growth opportunities, with up to 50% being returned to shareholders via a share buyback.
Donard Gaynor, chairman of Glanbia, 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.”
He continued: “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 [Glanbia] can continue to maximise the opportunities for its own business in the post-Covid environment, with our focus on health, wellbeing and nutrition”.
The purchase is subject to the execution of binding legal agreements between Glanbia and Glanbia Co-op.
© FoodBev Media Ltd 2022
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