Two companies which own some of Ireland's best-known consumer food brands have announced plans to join forces.
Valeo Foods, which was formed last year through a merger of Origin Foods and Batchelors, has agreed to buy Jacob Fruitfield. The price is not being disclosed.
Jacob Fruitfield's products include Jacob's biscuits, Chef sauces and Fruitfield jams. Valeo's brands include Batchelors, Odlums, Shamrock and Erin.
The combined business will have an annual turnover of around €300m and a workforce of almost 500.
Valeo is controlled by London-based private equity firm CapVest, which is headed by Seamus Fitzpatrick, who is also chairman of Valeo. Origin Enterprises is also a shareholder, while Jacob Fruitfield shareholders will also be taking a stake in the enlarged Valeo.
Seamus Kearney, Jacob Fruitfield's managing director, will become the group CEO of Valeo when the deal is completed.
Mr Fitzpatrick said the deal was a significant step in what was likely to be a continuing process of consolidation in the Irish food sector.
