Sector News

Donegal puts yogurt business up for sale

May 22, 2018
Food & Drink

Dublin-listed Donegal Investment Group has put its speciality dairy business, Nomadic, on the block.

A corporate finance adviser has been appointed to lead the disposal of the business, which makes a variety of yogurt products.

Donegal managing director Ian Ireland told the Sunday Independent that preliminary discussions have been held with a number of suitors and that an information pack is to be sent to potential buyers in the coming weeks.

Ireland has led a strategy that has seen the company dispose of a number of assets, across a wide variety of sectors, to focus on its seed potato business; Nomadic; and an animal feed business.

The shares have hit record levels this year and have gone from €5.50 to almost €9 in the last 12 months, fuelled by the sale of a stake in Monaghan Mushrooms, and the disposal of a property asset.

Some €62.5m in sale proceeds has been realised in the last 12 months and shareholders have approved a plan to return around €45m to investors on the back of the Monaghan sale.

The potential sale of Nomadic has come about on foot of a shareholder agreement, where a minority shareholder in that business has triggered his right to seek an exit.

As a result, the Nomadic board decided to embark on the current process.

Donegal is also engaged in a strategic review regarding the future of its remaining assets.

Ireland said the seed potato business is performing well and the company is aiming to grow it organically.

“It’s a good business, but we have to assess that against the requirements of our shareholders,” Ireland added.

“What we’ve said is we’re going to look at it [in terms of a strategic review].”

“We’ve gone through a lot of change and the market has responded well. I don’t think shareholders want us to adopt a reactive strategy and the share price to go back to €5,” he said.

By Gavin McLoughlin

Source: Irish Independent

Related News

February 28, 2021

Tetra Pak introduces certified recycled PE polymers for food contact applications

Food & Drink

Two Tetra Pak production sites in Europe are now certified to produce packaging with recycled polyethylene (rPE) polymers, according to the Roundtable on Sustainable Biomaterials (RSB) Chain of Custody mass balance attribution method.

February 28, 2021

Cargill names Brian Sikes as chief operating officer

Food & Drink

Cargill has appointed Brian Sikes as its chief operating officer (COO), a role in which he will also serve as a management director on the company’s board.

February 28, 2021

Heineken and Coca-Cola System realign Brazil distribution partnership

Food & Drink

Heineken has reached an agreement with The Coca-Cola Company and the Coca-Cola System in Brazil to redesign their long-standing distribution partnership in the country.

Send this to a friend