The Irish Dairy Board (IDB) has entered into an agreement to sell its Belgian continental cheese packing operation, IDB Belgium, to Netherlands-based Royal FrieslandCampina.
The transaction, which is subject to regulatory approval, is expected to be completed by 31 July 2012.
Proceeds from the transaction will be invested in furthering the IDB’s strategic growth plans and in international acquisition prospects.
A co-operative enterprise, the IDB is owned by Irish dairy processing co-operatives and dairy companies and, through them, by Irish dairy farmers. The IDB owns the high-profile Kerrygold brand—what it calls the Irish dairy industry’s “most important marketing asset”. Other IDB brands include Dubliner and Pilgrims Choice.
Headquartered in Dublin, Ireland, the IDB employs over 3,700 people globally. It exports Irish dairy products to over 80 countries worldwide, making it Ireland’s largest exporter of dairy products and a leading international food company.
IDB Belgium operates from Genk in Belgium and reported a turnover of around €100 million for the year ending 31 December 2011. The company is a packer of hard and semi-hard cheeses and is one of the largest packers in Belgium. Its products are sold to retailers (both under brands and as private-label products), as well as to food producers and the foodservice sector. IDB Belgium has been a subsidiary of the IDB since 1988.
IDB Belgium’s production facility in Genk, Belgium, consists of 15 packaging lines with a large variety of slicing and packaging forms and size options, from 15 grams to six kilograms. The plant employs around 160 people.
Commenting on the proposed transaction, Kevin Lane, CEO of IDB, said: "The sale of our continental cheese packing business to Royal FrieslandCampina N.V. is another significant strategic step for IDB. 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 realized with the support of a local dairy partner.
“Royal FrieslandCampina N.V. can bring greater synergy benefits to the Belgian business as well as presenting partnership opportunities with IDB in the future."
“With this acquisition FrieslandCampina expands its market position with prepacked cheese for both retailers and foodservice (catering and restaurants),” commented Piet Hilarides, chief operating officer of Royal FrieslandCampina. "This acquisition contributes to our growth objective as laid down in our strategy route2020.”
Royal FrieslandCampina is a multinational dairy company wholly owned by the dairy co-operative Zuivelcoöperatie FrieslandCampina, which has 14,391 member dairy farms in the Netherlands, Germany and Belgium. The company’s products are for sale in more than 100 countries. In 2011, sales amounted to over €9.6 billion. The company employs 19,000 people in 25 countries.
