Glanbia to sell share of Magheralin cheese factory to US partner Leprino
GLANBIA has agreed to sell its interest in the mozzarella factory in Magheralin to its US partner in the joint cheese venture.
The Steps Road facility will come under full ownership of Colorado-based Leprino Foods as part of the €160 million (£142m) deal, which also includes food manufacturing sites in Portlaoise and Wales.
Glanbia Cheese employs around 500 people and supplies mozzarella to around 30 countries.
It comes 23 years after the original joint venture between Glanbia and Leprino was formed in 2000.
Under the terms of the deal announced on Wednesday, Glanbia could make another €25m (£22m) over the next three years, dependent on business performance.
It comes just weeks after Glanbia Cheese notified Armagh City, Banbridge and Craigavon Borough Council of plans for a significant redevelopment of its Magheralin factory.
Wednesday’s announcement confirmed that Paul Vernon, who has headed the cheese operation for 28 years, is to remain as chief executive alongside the current senior management team.
“Glanbia Cheese is a strong, well invested business with an excellent team and deep customer and supplier relationships,” he said.
“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.”
The deal is expected to close in the first half of 2023.
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