Glanbia, the better nutrition company, has completed the sale of its shareholdings in Glanbia Cheese, a leading mozzarella maker in Europe comprising Glanbia Cheese EU Limited and Glanbia Cheese Limited, to Leprino Foods Company.
Transaction proceeds of €178.9 million have been received in cash, with further contingent consideration of up to €25 million, dependant on the performance of Glanbia Cheese over the next three years.
The transaction will be subject to customary post completion cash and working capital adjustments. The proceeds of the transaction will be used for general corporate purposes.
Following a transition period post-completion, the Glanbia Cheese business will be renamed Leprino Foods UK Limited and Leprino Foods EU Limited.
In the 2022 financial year, the group’s shareholding in Glanbia Cheese represented a gross asset value of €52.8 million and contributed profit before tax of €9.5 million for the group.
Glanbia Cheese has three manufacturing facilities – Llangefni in Wales, Magheralin in Northern Ireland and Portlaoise, Ireland. The existing team will continue to manage the business, led by CEO Paul Vernon and his senior management team, with no disruption to day-to-day operations.
Post completion, Glanbia plc will continue to focus on its better nutrition strategy serving consumer health and wellness categories through its consumer brands and ingredient solutions business.