Members of Kerry Co-Operative Creameries Limited have voted overwhelmingly in favor of the €500m proposed acquisition of Kerry Dairy Ireland Limited.
The co-op is hoping to seal the first phase of the deal by the end of January 2025.
The transaction was voted through by 82% of co-op members and will be completed in two phases: an initial phase worth €350m where the co-op is set to acquire 70% stake in the consumer and ingredients business, with Kerry retaining 30% for continuity reasons; and a second phase worth €150m to be completed by 2035 and see the co-op acquire the remaining 30%.
The deal will also transfer 85% of Kerry shares into the hands of co-op members ahead of the first phase of the transaction.
The acquisition- which will require clearance from the Irish Competition and Consumer Protection Commission – was described as ‘transformational’ by the co-op’s chairman James Tangney.
“I am very pleased that the A&B shareholders of Kerry Co-op have today voted in favour of the proposal,” he said in a statement.
“Today’s acceptance commences a journey that will ultimately lead to the full ownership of Kerry Dairy Ireland, one of the leading dairy businesses in the country, while its also releases c.85% of Kerry Co-op’s Kerry Group shares into the hands of our members to be retained or sold by each of them at a time of their choosing.
“The transaction is transformational for Kerry Co-op and satisfies the diverse aspirations of the vast majority of our members.
“Working in partnership with Kerry Group, the focus of the Kerry Dairy Ireland Board will be to transition the business to that of a Co-op ethos and build further on the strong commercial platform in place to deliver sustainable returns in the months and years ahead for all our members.
“We look forward to working with Pat Murphy, CEO of Kerry Dairy Ireland, and his accomplished leadership team to make this a reality.”
On Thursday, December 19, Kerry’s shareholders also voted to approve the proposed sale, paving the way for the transaction to be formally completed in the new year and beyond.
