Glanbia to sell mozzarella joint venture to Leprino
Glanbia and Leprino Foods Company says they have signed a non-binding agreement for Leprino Foods to acquire full ownership of Glanbia Cheese, a mozzarella maker in Europe, comprising Glanbia Cheese UK and Glanbia Cheese EU.
It is expected that Glanbia will receive initial cash consideration in excess of €160 million (inclusive of repayment of shareholder loans) for the sale of its stake in Glanbia Cheese, with the possibility of additional contingent consideration of up to €25 million over the next three years, dependent on business performance.
Glanbia Cheese has three manufacturing facilities – Llangefni in Wales, Magheralin in Northern Ireland and Portlaoise, Ireland. Post completion, the existing team will continue to manage the business, led by CEO Paul Vernon and his senior management team, with no disruption to day-to-day operations.
Commenting, Mike Durkin, president and CEO of Leprino Foods says: “Having successfully partnered with Glanbia since 2000, we are proud of the high-quality business that we have helped build. We look forward to working with Paul Vernon and the local team to ensure a seamless transition for our employees, customers and suppliers. We intend to take advantage of our combined expertise, knowledge and strengths to further enhance the business and are committed to ongoing investments in the core capabilities and the talented people that set us apart from our competition. We thank Glanbia for their valued partnership and wish them continued success.”
Paul Vernon, CEO of Glanbia Cheese concluded: “Glanbia Cheese is a strong, well invested business with an excellent team and deep customer and supplier relationships. We are excited by this proposed transaction which will see us align our business into Leprino Foods, the largest and most successful mozzarella business in the world. Glanbia Cheese will be a strong fit within Leprino Foods, with its strategic focus on our category. We look forward to working with Leprino Foods to build on our success as a trusted supplier and business partner to our customers in the pizza category across the UK and Europe.”
Subject to the completion of due diligence and execution of definitive agreements, it is expected that the potential transaction will close in the first half of 2023.