Donegal Investment Group, formerly Donegal Creameries, is selling its animal feed business for €17.25 million after conducting a strategic review of the business.
In a statement on Wednesday evening, the company said it had agreed to dispose of Robert Smyth & Sons Limited and its subsidiary – Burke Shipping Services Limited – to UK-based Fane Valley Co-operative Society.
The Smyths business manufactures animal feeds from a facility in Ballindrait, Co Donegal, and supplies branded and own-brand feed products for the beef, dairy, sheep, pig and poultry industries across the north and northwest of Ireland.
Burkes, meanwhile, provides port services including warehousing and customs clearance and is based at Lisahally Port in Derry.
“We will continue to support the growth plans of our speciality 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,” said Ian Ireland, the company’s managing director.
On completion of the deal, Fane Valley will pay Donegal €17.25 million in cash for the business which generated turnover of €35.5 million and profit before tax of €1.9 million in the year to the end of August 2018.
Donegal said proceeds of the transaction, which is subject to approval by the Competition and Consumer Protection Commission, will be used for “general corporate purposes”.
The company’s other activities include a produce division which comprises its seed potato business which includes proprietary varieties such as Rooster and Slaney. Its food-agri and property division includes its Nomadic yogurt brand.
