Kerry Group has finalised the first phase of its sale of Kerry Dairy Ireland to Kerry Co-Operative (Co-Op) Creameries.

The move comes after the nutrition business first announced its decision to offload the dairy manufacturer in November, and follows the business reporting net sales of £1.063bn (€1.283bn) and EBITDA of £44.2m (€53.4m) last year.

The sale is set to happen in two phases, with phase one, which saw Co-Op initially acquiring 70% of Kerry Dairy Ireland, now complete.

It is understood the second stage will see Co-Op having the option to purchase the remaining 30% from Kerry Group, allowing it to eventually take full ownership.

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Kerry Group chief executive Edmond Scanlon said: “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.

“I would like to recognise the Kerry Dairy Ireland employees for their contribution over the years and wish them the very best in the future.”

The transaction comes amid the group’s wider strategic transformation to become a global taste and nutrition solution company, and follows portfolio changes over recent years including the development of its proactive health, food protection and preservation, and enzymes platforms.

In 2021, the group finalised the sale of its Consumer Food’s meats and meals arm to Pilgrim’s Pride Corporation for £704m (€819m).