Local shareholders of Tipperary Co-Op are to attend a meeting in Ballykisteen hotel tonight to consider the proposed merger with Arrabawn. Meetings will also be held in Borrisoleigh on Tuesday night and in Tipperary Co-Op, Station Road, Tipperary again on October 24th. All meetings will start at 8pm and it is intended that the three meetings will provide ample opportunity for every farmer and supplier to attend. Milk Supplying Shareholders in both Co-Ops are to vote at two special meetings on November 7th to give approval for the deal which will also have to be approved by the Competition Authority in a process that could take up to a year. Although the two Co-Ops are neighbors the new entity will have the 4 largest milk pool in Ireland if Arrabawn Shareholders meeting in Charlieville, Carlow, Loughrea and Birr in the coming days also agree to merge. Arrabawn CEO Conor Ryan is from Cappawhite and Mr Ryan says that milk suppliers to Tipperary Co-Op will be getting a higher milk price in future.
The deal gives Arrabawn a valuation of €161M and Tipperary Co-Op €50M net of debt of €55M. The shareholders will hear details of the proposed transitional board and reforms to regional representative structures to be phased in over the first two years of the deal. It is understood that while the Tipperary town Production facility is technically very modern and has an “infant formula standard Dryer” there are efficiencies of up to €9M of cost savings available. So far no detail of any possible job losses due to rationalisation as part of the merger process have been revealed.
