Glanbia to sell Irish businesses
April 21, 2010
by Jeff Gelski
KILKENNY, IRELAND — Glanbia P.L.C. conditionally has agreed to dispose of its Irish Dairy and Agri Businesses to Glanbia Co-operative Society Ltd. (the Society), its 54.6% shareholder, the Kilkenny-based company said April 20. The sale will strengthen Glanbia’s balance sheet and provide financial flexibility to allow Glanbia to develop its international business operations further and grow its nutritional ingredients and cheese markets. Glanbia Nutritionals, Inc. has U.S. headquarters in Monroe, Wis.
Glanbia’s Irish dairy and agribusinesses is comprised of Dairy Ingredients Ireland, Consumer Products and Agribusiness, as well as Glanbia Estates, Group Business Services and Irish Joint Ventures and Associates.
Disposal proceeds will include 102 million Glanbia shares held by the Society, adjusted by a risk sharing adjustment, and cash of €49.7 million ($66.6 million). Glanbia expects total disposal proceeds of about €343 million ($459.6 million). After the disposal, the Society will have about 20% shareholding in Glanbia, down from 54.6%.
Glanbia will seek shareholder approval May 25 and expects to complete the deal no later than June 15.
The Irish Dairy and Agri Businesses delivered 2009 operating profit of €21.3 million, down from €49.9 million in 2008, and 2009 revenue of €1,037.9 million, down from €1,357.0 million in 2008.