Carlow-based Codd Mushrooms has agreed a deal to acquire a company in Britain in a move it expects will more than double its revenues within four years.
The company, led by brothers Leslie and Raymond Codd, has agreed a deal with J Rothwell & Son Ltd in Ormskirk in Lancashire.
This will involve the current owner of the business remaining with the company and co-investing in a new £6 million plant that Codd plans to build to expand its capacity.
Codd’s staff numbers will grow from 240 at present to about 500 staff by 2020, with its annual revenues rising from €18 million to €40 million.
British market
Codd supplies more than 50 per cent of all mushrooms consumed in
Ireland
and this move will give it a presence in the British market, where Rothwell has a 5 per cent market share.
"All of the expansion over the next few years is going to be in the UK," Mr Codd told The Irish Times last week on the fringe of the EY Entrepreneur of the Year chief executives retreat in Boston.
“This is the perfect bolt-on and an opportunity to enter the UK market without having to take market share off existing suppliers.
“We’re going to build a new plant and scale that facility over there. It’s currently going through planning permission stage.” Separately, Codd has joined the Northway Mushrooms producer group in Northern Ireland. This will give it access to EU grant funding, while the members also plan to build a £20 million compost plant in Ballygawley, Co Tyrone.
Funding and planning permission has been arranged. Northway has 29 members – five in the Republic and 24 in the North.
Mr Codd said the new plant would give the company “better compost and a secure supply”. Compost accounts for about one-third of its costs and is the company’s most important raw material. Codd currently sources its compost from rival mushroom groups in the Republic.
Codd has being growing mushrooms since 1989 from its base in Tullow.
It produces more than 5,000 tonnes of agaricus bisporus or (white mushrooms) each year and has its own windmill, which generates about 13 per cent of its energy needs.
Its retail customers include Dunnes Stores, Tesco, Aldi and BWG in Ireland, and Morrisons in Britain.
