Last week the completion of the sale of 12 million shares in Glanbia netted Tirlán €257.6m. To put that number in context, it is almost €100m more than combined profit after tax the co-op has made in the four years since it split from Glanbia and returned to full farmer ownership.

The co-op gave little indication as to what it might do with its windfall, other than to say that its intention is to “re-invest the funds raised, over time, in the longer-term best interests of the co-op”. While this suggests that Tirlán does not intend to leave the money sitting in the bank, it gives no suggestion at all as to what it might be spent on.

James McCarthy, the co-op’s chief investment and strategy officer, hired from EY in 2025, will have his hands full trying to find the right investment. While trying to figure out what to do with quarter of a billion euro might sound like a great problem to have, the task facing McCarthy is potentially much larger.

Members of Tirlán voted at a Special General Meeting (SGM) in October 2024 to remove the rule that had barred the co-op from reducing its share in Glanbia below 17%. The spinout that followed that SGM and the sale completed last week leaves Tirlán shareholding at 13.2%. However, that remaining stake, totalling 31,548,762 shares, is worth around €675m. With no hindrance under co-op rules on cashing that in (beyond market appetite for the shares) there is nearly €1bn available for McCarthy to spend, should he find the right investment.

Despite numerous calls to the usual sources within Tirlán, the Irish Farmers Journal has not been able to get so much as a hint as to what might be planned for the money. But there’s a page to be filled, so what follows is a look at what the co-op could do with the money.

Energy

One area that has got a lot of attention due to President Trump’s recent manoeuvres in the Middle East has been the cost and availability of energy. This has increased the interest in renewable energy generation. As a firmly rural-based organisation, it would make sense for Tirlán to invest in this space, and with the budget available, that investment could be substantial. The cash from last week’s share sale would easily pay for the total costs of installing 300MW of solar.

An investment in this space might be tempting for McCarthy as he did some due diligence on deals in that industry during his time in EY. It would also be an easier sell to the board of the co-op as it is a sector they would likely to have some understanding of, and is one which should provide the long-term returns the co-op seeks.

If the co-op is looking for a diversification investment through acquisition of another company, there are probably plenty of options out there. With a potential pot of close to a billion euro, the co-op certainly has the firepower to look for something which could be transformative in the longer-term.

Of companies listed on the Irish stock exchange, Origin Enterprises could be a good fit.

The owner of Gouldings trades in areas adjacent to what the co-op already does while also being different enough both in its customer base and global footprint to provide some diversification.

Again, the board would probably understand enough about the business to feel comfortable with the investment. However, the price that a deal could be done at would force Tirlán to put almost all its eggs in one basket.

The problem of cost and getting value for money should not be underestimated.

There are a lot of investors both in Ireland and abroad with very deep pockets looking for somewhere to earn a return. Tirlán will have to compete with them on any investment.

Paying a high price for a company could still work, provided it is the right company, but elevated valuations add another layer of risk when trying to serve the longer-term best interests of the co-op.

The difficulties in trying to find the right company can be seen in Glanbia which has a long history of growth through acquisition. Its record of success could be seen as mixed, with some purchases, such as SlimFast, not working out at all. However, the runaway success of Glanbia’s biggest winner, Optimum Nutrition, far outweighs the costs of associated with any underperformers.

Comment

This week, the Irish Farmers Journal is launching the new Down to Agribusiness podcast. We were delighted to interview Glanbia CEO High McGuire for the first episode. In it he talks about his career with the company and some of the challenges he faced.

One of the many interesting things Hugh said was that when he suggested buying a company in Germany many years ago, a member of the board of Glanbia asked what the proposed acquisition had to do with dairy. It’s very hard to get a board to agree to a major purchase if they do not understand what they are buying.

That share sale may well have been made with the idea of prudently taking some money off the table following the considerable rally in Glanbia’s shares, rather than with any new purchase in mind

Today’s Tirlán board will also have to approve any major spending decisions, and that decision will be made a lot easier if the proposal is in an industry that they already understand.

The good news for all concerned is that there is no immediate pressure on the board to spend the money they received from last week’s share sale. That share sale may well have been made with the idea of prudently taking some money off the table following the considerable rally in Glanbia’s shares, rather than with any new purchase in mind.

What to do with it certainly a challenge for management at the co-op, but it is one that any other co-op in the country would absolutely love to have.