Glanbia Cheese, a leading mozzarella maker in Europe, is to be bought by US giant Leprino Foods later this year.
Glanbia plc and Leprino Foods have signed a non-binding agreement for Leprino to acquire full ownership of Glanbia Cheese, which is currently a joint venture between the two firms.
It is expected that Ireland-based Glanbia plc will receive initial cash consideration in excess of €160 million (£142m).
Glanbia Cheese has three manufacturing facilities – Llangefni in Wales, Magheralin in Northern Ireland and Portlaoise, Ireland.
Post completion, the existing team will continue to manage the business, led by CEO Paul Vernon and his senior management team.
Mr Vernon said: "Glanbia Cheese is a strong, well invested business with an excellent team and deep customer and supplier relationships.
"We are excited by this proposed transaction which will see us align our business into Leprino Foods, the largest and most successful mozzarella business in the world.
"We look forward to working with Leprino Foods to build on our success as a trusted supplier and business partner to our customers in the pizza category across the UK and Europe."
Subject to the completion of due diligence and execution of definitive agreements, it is expected that the potential transaction will close in the first half of 2023.
Mike Durkin, CEO of Leprino Foods added: “Having successfully partnered with Glanbia since 2000, we are proud of the high-quality business that we have helped build.
"We look forward to working with Paul Vernon and the local team to ensure a seamless transition for our employees, customers and suppliers.
"We intend to take advantage of our combined expertise, knowledge and strengths to further enhance the business and are committed to ongoing investments in the core capabilities and the talented people that set us apart from our competition."