Farmers now in line for €10,000 Glanbia payout
Farmers will share average windfalls of more than €10,000 if they back plans to create a €1.5bn business involving Glanbia's Irish consumer brands.
Almost 15,000 Glanbia Co-op farmers will split a €105m windfall under a plan hatched to create a new €1.5bn business that will include Glanbia plc’s consumer brands such as Avonmore and Kilmeaden.
The deal will create Ireland’s biggest dairy company.
Glanbia plc – the €5.2bn stockmarket-listed company that is 36pc-owned by the Co-op – revealed plans yesterday to create a new entity called Glanbia Ireland.
Under the plan, the Co-op would pay €112m to Glanbia to secure a 60pc stake in Dairy Ireland, whose assets would then be transferred to Glanbia Ireland – which include Glanbia’s Irish consumer foods business, as well as its Irish agribusiness unit.
Glanbia Ingredients Ireland, a joint venture between Glanbia and the Co-op, will also become part of Glanbia Ireland.
At least 66pc of the Co-op members will have to vote in favour of the deal for it to be approved. Glanbia shareholders also have to agree to the plan. That vote could take place by May and the deal could be cemented by June.
Glanbia’s Dairy Ireland business generated revenues of €616.2m last year and earnings before interest, tax and amortisation (EBITA) of €30.7m. Glanbia Ingredients Ireland has revenue of €836m.