Dairy Crest confirms reduction of stake in Wexford

Dairy Crest confirms reduction of stake in Wexford Creamery Limited

Dairy Crest today confirms that it has reduced its stake in Wexford Creamery Limited ("the 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 on 3 June.

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. 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 €9 million to repay bank debt.

Martyn Wilks, Dairy Crest's Executive Managing Director, said: "We have enjoyed a long and positive relationship with WMP through our joint ownership of the Creamery and this will continue. However the strategy of Dairy Crest's Foods Division is to increasingly focus on a small number of key brands and this transaction is another step in this direction. " 

For further information please contact:

Arthur Reeves, External Affairs Director, Dairy Crest: 01372 472236