Global ingredients and performance nutrition group Glanbia has sold its stake in Nutricima, a joint venture with PZ Cussons based in Nigeria, after the business no longer fits the group’s strategic priorities.
PZ Cussons has agreed to buy Glanbia’s 50% stake for a cash consideration of about £21 million.
Last year, Nutricima generated profit before tax of £1.3m (€1.8m) last year. The JV was only a minor part of Glanbia’s earnings. The business had concentrated on supplying enriched milk powder to the Nigerian market.
As part of the transaction, Glanbia Ingredients Ireland will enter into a long-term agreement with Nutricima for the supply of dairy ingredients.
“We believe this is the right move for Glanbia at this time. The region remains a significant market for dairy ingredients, particularly enriched milk powders and we look forward to continuing the relationship with PZ Cussons through the new long-term supply agreement with Glanbia Ingredients Ireland,” commented Siobhan Talbot, Glanbia’s Managing Director.
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