Ornua divests majority stake in DPI Speciality Foods

Ornua, the erstwhile Irish Dairy Board, has divested its majority stake in DPI Speciality Foods, a speciality foods distributor in the US, to Chicago-based Arbor Investments.

Though financial details of the transaction, which closed on Monday, have not been disclosed officially, a report by RTE News claims the figure may be around €30m.

DPI Speciality Foods sells organic, ethnic and gourmet foods to restaurants, foodservice operators and retailers.

With eight distribution centres spread across the US, it is considered to be one of the leading speciality food distributors in the country.

Following the divestment, Ornua holds a minority interest of 20% in the US distributor, RTE News reported.

The proceeds from the transaction will be used by Ornua in bolstering its presence in Europe, the Middle East, China and the US.

The present senior management will continue to lead DPI.

DPI employs around 1,800 people and has annual revenues of more than $1bn.

Ornua CEO Kevin Lane was quoted by the Irish Times as saying: "The sale of a majority stake in DPI allows us reinvest the significant proceeds in our core business of building routes to market for Irish dairy products."

Ornua has annual sales of more than €2bn. It accounts for 60% of Ireland’s overall dairy exports, to more than 110 countries across the world.

Last week, Ornua announced the opening of a Kerrygold facility in Nigeria.