IRELAND: Dairy Crest reduces stake in Wexford Creamery
Dairy Crest wants to focus resources on brands like Cathedral City
Dairy Crest has reduced its stake in Ireland's Wexford Creamery from 80% to 30%, the UK dairy giant announced today (14 June).
The announcement followed the decision of the members of the Wexford Milk Producers co-operative to increase its stake in the business from 20% to 70%.
"The transaction allows Dairy Crest to concentrate on its key brands and further reduces its exposure to volatile commodity markets in line with its strategy," Dairy Crest said.
Dairy Crest will continue to provide a range of services to the creamery, including packing and distribution. The company will also sell Wexford-branded cheese in the UK on behalf of the creamery for a transitional period.
Dairy Crest will use the cash proceeds from the transaction of around EUR9m (US$11m) to repay bank debt.
Martyn Wilks, Dairy Crest's executive managing director, said: "We have enjoyed a long and positive relationship with Wexford Milk Producers through our joint ownership of the creamery and this will continue.
"However the strategy of Dairy Crest's foods division is to increasingly focus on a small number of key brands and this transaction is another step in this direction."
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