IDB said proceeds from the sale will be invested in "furthering the groups strategic growth plans"

IDB said proceeds from the sale will be invested in "furthering the group's strategic growth plans"

The Irish Dairy Board (IDB) is to sell its Belgian continental cheese packing operation to FrieslandCampina.

The transaction, announced yesterday (11 June) for an undisclosed sum, is expected to complete by the end of July.

IDB said proceeds from the sale will be invested in "furthering the group's strategic growth plans" and in international acquisition prospects.

"The sale of our continental cheese packing business to Royal FrieslandCampina is another significant strategic step for IDB," said IDB CEO Kevin Lane. "The divestment will unlock additional capital to develop more focused routes to market for Irish product at a time when IDB Belgium's future potential can best be realised with the support of a local dairy partner. Royal FrieslandCampina can bring greater synergy benefits to the Belgian business as well as presenting partnership opportunities with IDB in the future."

IDB's Belgian operations from Genk and had turnover of around EUR100m (US$125.1m) in 2011.

The transaction is subject to regulatory approval.