Glanbia to ditch milk business for £262m

Nutrition giant Glanbia is to sell its 40 per cent stake in Ireland’s biggest milk processor as part of a shift to its core divisions.

The multinational plans to offload its Glanbia Ireland interest to venture partner Glanbia Co-operative Society for €307m (£262.3 million).

It comes as dairy companies on the other side of the Irish Sea grapple with supply chain issues and inflationary pressures.

According to RTÉ, Glania will turn its focus to producing protein supplements and nutritional ingredients.

READ MORE: Farmers ‘pull the plug’ on milk amid HGV driver crisis

Up to half of the proceeds from the deal will apparently go to shareholders, with the rest re-invested in “growth opportunities”.

Managing director Siobhan Talbot said the move would allow Glanbia to “play… into strong underlying consumer health and wellness trends”.

It is “planning further pricing actions for early in 2022 in response to the continued inflationary environment”, she added.

Glanbia Co-op has proposed to transfer 12 million Glanbia plc shares to members of the society.

Based on Glanbia’s closing share price of €13.98 yesterday, this comes to around €11,028 each for an average shareholder.

The news comes a month after the UK’s biggest dairy supplier revealed it faced a triple whammy of inflation shocks from rising energy, packaging and labour costs.

Managing director Ash Amirahmadi also admitted that the nationwide shortage of lorry drivers meant it was a “real challenge” to deliver to hundreds of shops every day.

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