Glanbia expands its brand with Dawn Dairies buyout
Kerry Group's liquid milk business in Limerick, Dawn Dairies, has been bought by Glanbia.
Both parties refused to comment on the sale price but it is understood to be in the region of €10m.
Under the terms of the deal, which must be approved by the Competition Authority, the 100 or so Dawn suppliers in the Limerick area will remain with Kerry.
Glanbia has agreed to source milk for the Limerick business from Kerry for the next six years, with a possibility of this deal being extended for a further four years. The total volume of milk involved is believed to be around 7.5m gallons (34m litres).
Kerry Group is also to retain ownership of Dawn's site in Limerick city and will lease it to Glanbia; the employees will transfer to Glanbia.
The Dawn business supplied Limerick city and county, Clare and parts of west Tipperary and north Cork, and it is understood that Glanbia will continue to market both the Dawn and Golden Vale brands.
A spokeswoman for Glanbia said the acquisition of Dawn Dairies was important because it extended the company's "footprint".
"We [Glanbia] have a track record in supporting our brands. We have a long-term interest in staying in liquid milk and that is good for everybody involved," she said.