News Dairy
Members approve acquisition of Kerry Dairy
Cooperation Kerry has approved the acquisition of Kerry Dairy Ireland by a large majority. This company is being bought from Kerry plc, the publicly traded company, which will temporarily retain a portion of the shares.
The acquisition, which has been in the works for some time, will cost the cooperation €500 million, but not immediately. €350 million must be paid for the acquisition of the first 70% of the shares. The remaining €150 million will be paid in 2035. Until then, Kerry plc will retain a 30% stake.
Paid with shares
Cooperation Kerry does not need to take out a loan for the purchase. It will be paid with Kerry plc shares. The cooperation owns over 16 million shares in the publicly traded company. These shares will be transferred to the individual members of Cooperation Kerry. They are then free to hold or sell those shares. The total value of the share package is around €1.4 billion.
Kerry Dairy is the third largest dairy processor in the Republic of Ireland, after Tirlán and Lakeland Dairies.
