Co-ops agree to merger terms
Special shareholder meetings planned
The boards of Arrabawn Co-operative Society Limited (Arrabawn) and Tipperary Co-operative Creamery Limited (Tipperary) have reached agreement on the merger of the co-operative societies.
The boards met separately in Nenagh and Tipperary to discuss the proposed amalgamation following the completion of thorough due diligence by independent experts on both sides.
As a result of the unanimous decision by the boards to amalgamate the co-operative societies, the recommendation to merge will now be put to the respective shareholders of both co-operatives at Special General Meetings to be held on Thursday, November 7. The merger is also subject to regulatory approval.
The co-ops, in early September, entered exclusive discussions to combine their operations to create a stronger entity within the Irish dairy industry. The new merged co-op will be called Arrabawn Tipperary Co-operative Society Limited and will be a dairy and agri-trading co-operative, owned and controlled by over 4,800 members, with more than 1,400 milk suppliers supplying almost 750 million litres of milk annually. This will position the new co-op as one of the largest dairy co-operative processors in Ireland, with projected annual turnover exceeding €700 million.
Arrabawn and Tipperary are neighbouring societies with a similar deep heritage and shared ethos, values and culture committed to supporting the long-term sustainable future of their milk suppliers, agri-traders, members, employees, customers and their families, while maintaining their commitment to the sustainable development of the Irish dairy industry.
The merger will bring substantial benefits for the new co-op, positioning it as a strong competitor both nationally and internationally within Ireland's agricultural sector. Arrabawn and Tipperary have complementary product offerings, routes to market and well-invested and technically advanced manufacturing facilities that will help deliver a sustainable milk price for milk suppliers. The announcement of the unanimous agreement was made jointly by the Chairperson of Arrabawn, Edward Carr, and the Chairperson of Tipperary Co-op, William Ryan. In the meantime, both co-ops will continue to operate their businesses as usual.