UK’s Dairy Crest to reduce stake in Wexford Creamery

Dairy Crest of the UK has reduced its stake in Wexford Creamery from 80% to 30% through a buyback of 1,250,000 shares by the Creamery. Wexford Milk Producers (“WMP”) has increased its stake from 20% to 70% after the approval of WMP’s members for the transaction was received last month.
“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,” the company says. ” Dairy Crest will retain a minority stake in the Creamery and will continue to provide a range of services to the Creamery, including packing and distribution, and 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 EUR9 million to repay bank debt.