The farmer-owners of Wexford Creamery have approved the sale of the Irish dairy processor to Glanbia Ingredients Ireland.
Members of farmer co-op Wexford Milk Producers voted in favour of a plan to sell its 70% stake in the business to Glanbia Ingredients Ireland.
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The deal will see Wexford Milk Producers buy the other 30% of the company from UK processor Dairy Crest.
The transaction remains subject to the approval of Ireland’s competition watchdog. Jim Bergin, CEO of Glanbia Ingredients Ireland, said: “We look forward to continuing to build on what has been a long, and mutually beneficial relationship with Wexford Milk Producers over many years involving milk supplies, cheese manufacture and whey supplies.”
Glanbia will attain a selection of branded products. However, the deal will also boost its supply of milk and processing capacity through the deal ahead of the planned end of EU quotas on milk production.
Bergin added: “Subject to Competition Authority approval we hope to complete the transaction in quarter one 2014 which will allow us to work in partnership with Wexford to optimise the opportunities presented by milk quota abolition and to build a sustainable business for all concerned into the future.”
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By GlobalDataIreland-based dairy and ingredients group Glanbia plc owns 40% of Glanbia Ingredients Ireland. The other 60% is owned by Glanbia Co-operative Society Limited, the co-operative that is the largest shareholder in Glanbia plc.
