Ornua secures €610M bank facility
It replaces the company’s previous facility of €420M (£370.5M) from February 2014 and will extend to November 2022.
The investment would be directed to two areas, said Ornua. The first part, worth €260M (£229M), would be used to fund the firm’s own working capital requirement and international growth strategy.
The second part of the funding, worth €350M (£308.7M) would be used to fund the working capital requirements of Ornua’s member suppliers, Ireland’s dairy processors. A further €100M (£88.2M) would be made available to Ornua, if needed.
Capital requirements of Ornua’s members
The banks supplying the investment remained the same as under the previous facilities: Allied Irish Banks; Bank of America Merrill Lynch; Barclays; HSBC; Rabobank and Ulster Bank.
Commenting on the refinancing, Donal Buggy, Ornua’s group finance director, said: “The successful refinancing ensures that Ornua retains access to the banking liquidity it needs to continue implementing our strategic five-year growth plan ‘Ornua 2021’ following the removal of milk quotas in 2015 and delivering strong product price returns for Irish dairy farmers.
“Not only does it strengthen our capital structure, but it also provides continued working capital support to our member suppliers and ultimately the dairy community across Ireland.”
Ornua markets and sells dairy products on behalf of its members and is one of Ireland’s largest exporters of Irish dairy products.
Exports to over 110 countries
Headquartered in Dublin, it exports to over 110 countries with annual sales of €2bn (£1.7bn), operating from 20 subsidiaries worldwide and employing over 2,000 staff.
The company has seen strong growth in international markets over the past year, including the launch of Kerrygold butter in South Korea and opening an innovation centre in Chicago, Illinois.
In January, Ornua agreed to buy Cheshire-based cheese firm FJ Need (Foods) for an undisclosed sum.
Meanwhile, last year, head of Ornua Ingredients UK Aidan Wilson explained to our sister title Food Manufacture the company’s future growth strategy in an exclusive interview.
