Reox Holdings, the company spun off from Dairygold last year, has bought Dutch consumer foods business Prime Meats in a deal worth €10 million.
Prime Meats, which had turnover of €14 million last year, is a consumer foods business supplying products to more than 5,000 clients in the hotel, restaurant and catering sector in the Netherlands.
The company was established in 1995 and operates from Beverwijk, near Amsterdam.
Reox was formed in May last year from the spin-off of the Breeo consumer foods, DIY and property divisions of Dairygold. The acquisition of Prime Meats brings Breeo's turnover in the Netherlands to €65 million.
"Management is committed, via organic growth and further acquisition, to driving the business towards a €100 million in-home and out-of-home consumer foods business in the current plan cycle," said Reox chief executive Jerry Henchy.
Breeo Foods' brands include Shaws, Dairygold, Galtee and Mitchelstown. As well as Ireland and the Netherlands, the company operates in the UK, Germany and the US.
"This is a strategically important acquisition for Reox," said Mr Henchy. "To date our consumer foods business, Breeo Foods, has been successful concentrating on supplying in-home consumer foods. Recognising the global trend towards out-of-home eating, we have been actively targeting acquisitions which service this sector.
"Prime Meats is a business 100 per cent concentrated on providing tailored food solutions to the upper end of the hotel, restaurant and catering sector and moves Breeo Foods into the high growth area of out-of-home eating."
He said the Irish market was intensely competitive and mainland Europe offers the best prospects for growth in the consumer foods market. The acquisition of Prime Meats gave Reox a much stronger foothold in the European market and in a high growth sector, said Mr Henchy.
"In addition, we believe that there is the potential to augment Prime Meats offering with certain existing Breeo products, further increasing our sales in this important market," he said.
