A German activist investor in Glanbia has written to the board of Tirlán Co-operative Society, the nutrition group’s largest shareholder, in a bid to enlist support for a campaign for the business to carry out a strategic review after a share price slump.
Clearway Capital, which is understood to own close to 1 per cent of Glanbia, said in a letter sent on Tuesday to Tirlán, writing that a “fundamental strategic review focused on separating Glanbia’s distinct business units is not only overdue but essential”.
Tirlán, the farmer-owned coop that completed the purchase of Glanbia’s former dairy processing unit in 2022, owns 29.3 per cent of Glanbia. It is estimated that at least a further 20 per cent are directly held by current and former Tirlán members – or the estates of former members.
“The time has come to conduct a formal, board-led strategic review focused specifically on separating the businesses from one another,” Clearway Capital’s founder and chief executive Gianluca Ferrari said in the letter, seen by The Irish Times. Clearway had previously aired grievances with the company three years ago.
“We are aware that other major institutional shareholders have recently conveyed similar messages to the company in private, underscoring broad shareholder consensus on the need for a decisive path forward,” the letter said.
It said that a separation could be achieved through various means, including sales of its US dairy and global ingredients assets, or a spin-off its biggest division, Glanbia Performance Nutrition (GPN), which sells protein powders and shakes to gym-goers and dieters, to existing shareholders and a listing on a US exchange.
It could also involve a strategic sale of GPN, home of the Optimum Nutrition brand, the letter said.
A spokesman for the co-op, which has representatives on Glanbia’s board, declined to comment on the letter. A spokeswoman for Glanbia also declined to comment.
“On its own, GPN is likely worth more than Glanbia’s entire current enterprise value. In other words, the market is ascribing no value to the company’s remaining operations,” the letter said.
Clearway’s move follows a 43 per cent slump in Glanbia’s share price over the past year, accelerated by profit warnings in November and February, the day of its annual results, as the group was caught out by higher-than-expected prices for high-end whey, a key input in the group’s suite of protein products.
Glanbia’s market value is currently €2.6 billion and its net debt stood at €436 million at the end of December. This points to an enterprise value of more than €3 billion.
Glanbia also announced in February that it was selling its SlimFast unit, which had been bought in 2018, and Body & Fit business, acquired a year earlier, after neither deal delivered on hopes.
Mr Ferrari said a strategic review should be undertaken swiftly and transparently. “With the upcoming Glanbia and Tirlán AGMs in April and May 2025 respectively, there is a critical window of opportunity to signal to all stakeholders that Glanbia’s largest shareholder is committed to restoring value and strategic clarity,” it said.
