DAVY VIEW

Kerry Group has announced the proposed sale of its Dairy Ireland division to Kerry Co-op for an estimated consideration of €500m. The consideration implies an EV/EBITDA multiple of 7.5x our FY24 EBITDA forecast of €66.9m, which we think is fair. Under the proposed transaction, the Co-Op will initially acquire a 70% interest while Kerry Group will retain a 30% interest. The transaction, which requires shareholder/member approval from both counterparties, is expected to be c.2% dilutive in the first year post transaction. The transaction marks a further step in Kerry’s ongoing and proactive portfolio evolution. Management will host a conference call at 07:30.