Glanbia Disposes of Pigmeat Business

04/03/08 Glanbia plc, the international cheese and nutritional ingredients Group, has announced its exit from pigmeat activities, Glanbia Meats Ireland.

In August 2007 a major fire destroyed a significant part of a Glanbia Meats processing facility in County Offaly. For the past year or more the Group has been reviewing the strategic options for the business and further to the announcement made on 16 January, Glanbia confirms that it has reached agreement on the sale of its pigmeat business to an MBO team led by Glanbia Meats Chief Executive, Mr Jim Hanley. Further to the sale the business is to operate as Rosderra Irish Meats Group Limited.

The total consideration received by Glanbia for the business (including insurance proceeds for the destroyed assets) will amount to Euro35 million. An exceptional loss of Euro20.5 million will be recorded in the 2007 financial statements of the Group relating to the exit from pigmeat activities, inclusive of the sale of the Ruskey cannery site.

'This development is consistent with Glanbia's stated objective of focusing on key growth areas of cheese and nutritional ingredients and the proceeds from this transaction will be invested in furthering the Group's growth strategy' said Glanbia Group Managing Director, John Moloney.