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Glanbia in step towards restructuring

Tuesday, October 23 11:25:42

Irish foods group, Glanbia, today said it has signed contracts with Glanbia Co-Operative Society to create a joint venture deal for its Dairy Ingredients Ireland unit in a restructuring of its business.

It said it is to enter into a 40pc (Glanbia) : 60pc (Society) joint venture, which the announced signing of a memorandum of understanding between the two parties on 29 August and is a further step towards the completion of the transaction.

The Dairy Ingredients Ireland division, which comprises the vast bulk of Glanbia's Irish milk-processing activities, and excludes its consumer foods and agribusiness operations, has revenues of about E700 million.

"At this point in our development we face clear strategic choices as we approach a post quota era," said John Moloney, Group Managing Director of Glanbia.

"The proposed new Joint Venture is based on an existing, well invested and profitable international dairy ingredients business. This creates a strong platform from which to grow milk volumes and to capture the benefits arising from increased milk production and processing, post the abolition of milk quotas. The Joint Venture will ensure a continuation of strong and complementary links between the plc and the Society within a structure that better accommodates the strategic interests of Society members. It also enables Glanbia to continue its successful international growth strategy and to maximise value for all shareholders."