Agreement to sell the Belgian continental cheese packing operation, IDB Belgium NV, which achieved a turnover of some €100m last year, but the deal is expected to be finalised in about five weeks time subject to regulatory approval.
No price has been disclosed but industry sources believe it is considerably less than one times sales.
Proceeds from the sale will be used to develop more focused routes to market for Irish product and for acquisition.
IDB chief executive Kevin Lane said this week: “The divestment will unlock additional capital to develop more focused routes to markets for Irish product at a time when IDB Belgium’s future potential can best be realised with the support of a local dairy partner.
“Royal FrieslandCampina NV can bring greater synergy benefits to the Belgian business as well as presenting partnership opportunities with IDB in the future,” he added.
finance award
And in other IDB news, the refinanced credit facility (€190m) clinched by the board with Rabobank and a syndicate of six other international banks last January has won this year’s Finance Dublin’s ‘loans and financing deal of the year’ award.
The new funding facility will see the 10 IDB members apply and use the fund to cover cashflow and working capital requirements going forward.
This is the first deal of its type in Ireland to be syndicated on a funded basis to a group of international banks.
The banks in effect release funds on the strength of the pre-approved invoices from the IDB and these funds are secured on the stock behind the relevant invoice.
The deal offers members a non-recourse – off balance sheet line of finance – for the next three years for the first time.
It also separates IDB’s funding structure which in future will have a €160m revolving credit facility to fund its own development agenda.
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