The acquisition of Kerry Dairy Holdings (Ireland) Ltd by Kerry Co-Operative Creameries Ltd was successfully finalized on December 31, 2024. This pivotal transaction occurred less than two months after Kerry Group announced the sale in November.
This sale unfolds in two phases. Initially, the co-operative will secure a 70% stakein the dairy business for €350 million, with plans to obtain the remaining 30at a later date for an additional €150 million.
Kerry Group’s chief executive, Edmond Scanlon, highlighted the importance of this transition, stating: “Today marks a significant step in Kerry’s history, becoming a pure play global business-to-business taste and nutrition company, with sustainable nutrition at its core, while also supporting our financial objectives of continued market outperformance, strong margin progression and delivering greater returns for our shareholders.”
Scanlon also expressed gratitude towards the Kerry Dairy Ireland workforce, stating: “I would like to recognise the Kerry Dairy Ireland employees for their contribution to Kerry over the years and wish them the very best in the future.”
On the same date, Kerry Group effectively redeemed and cancelled the Co-Op’s entire shareholding of 19,045,396 A Ordinary Shares. Simultaneously, the company issued 16,187,024 A Ordinary Shares (referred to as the “New Shares”) to Co-Op members and to address fractional share entitlements.
Kerry Group’s Q3 interim management statement revealed that the Taste & Nutrition division saw a 3.4% volume growth, while the overall group volumes increased by 3.2%. Notably, year-to-date earnings before interest, taxes, depreciation, and amortisation improved by 120 basis points for the Taste & Nutrition segment and 140 basis points across the group.
Scanlon remarked: “This represented continued strong volume growth in the Americas, a good performance in APMEA, with volumes in Europe turning positive in the third quarter.” He further noted, “Volumes in the retail channel steadily improved through the period, while foodservice continued to deliver strong growth, given our unique positioning as we outlined at our recent investor day. We remain on track to achieve our full-year guidance, and today we reiterate our range of 7% to 10% constant currency adjusted earnings per share growth.”
