The Donegal Investment Group has announced the sale of its animal feed business, Robert Smyth & Sons Limited, for €17.25 million.
The business and its subsidiary companies were acquired by the UK-based Fane Valley Co-Operative Society.
It will be business as usual at Smyths Daleside Animal Feeds, as it will continue to trade under the same name and retain local management and staff.
Founded in 1865, Smyths is a leading provider of animal feed products and nutrition, located in Ballindrait in East Donegal.
The company generated a turnover of €35.5 million and profit before tax of €1.9 million in the year to the end of August 2018.
Strategically located near the port in Lisahally, Smyths supplies a broad range of ruminant and monogastric feeds to a diverse customer base across the North and West of Ireland.
Fane Valley’s acquisition incorporates Smyth’s subsidiary companies including Burke Shipping Services Ltd, based in Lisahally Port.
Donegal Investment Group, formerly Donegal Creameries, said the disposal of the business was in line with a strategic review of the Company’s various businesses and assets.
Completion of the Proposed Transaction is subject to approval by the Competition and Consumer Protection Commission.
Ian Ireland, Managing Director of Donegal Investment Group plc, said: “We wish the Businesses, their employees and management, and their new owners Fane Valley, every success in the future. We will continue to support the growth plans of our specialty dairy business Nomadic as well as continuing the strategic review of the remaining businesses and assets of the Company with the objective of maximising value for all shareholders.”
Trevor Lockhart, Fane Valley Group – Chief Executive commented: “We are delighted to be acquiring Smyths Daleside Animal Feeds. It has built a strong brand and reputation for premium feed products, flexible and innovative feed solutions and excellent customer service.
“The company will continue to trade under the Smyths Daleside name and day-to-day operational responsibility will remain with local management and staff. Customers can therefore be assured of a ‘business as usual’ approach in their dealings with the company going forward.
“The acquisition is a ‘natural fit’ for Fane Valley and presents an opportunity for the Co-op to further extend its catchment area for the supply of animal feed products and nutritional services. It will complement the Co-op’s £18m investment in a new feed mill in Omagh, Co.Tyrone in 2010 and demonstrates Fane Valley’s commitment to the future of livestock production in this region. The Board of Fane Valley acknowledges the support of Ulster Bank for the acquisition and for their on-going assistance to the Group”.Tags: