Fruitfield Foods has acquired W&R Jacob, the biscuit business of Group Danone in Ireland. The purchase price was not disclosed.
The recent deal between Group Danone and United Biscuits in relation to both the UK and Irish parts of Jacob's allowed for Danone to sell the Irish part of the business to a third party before the conclusion of the sale to United Biscuits.
Talks between Danone and Fruitfield continued in relation to the Irish business, leading to today's deal.
The 430 people who are currently employed at Jacob's will transfer to the new merged company, which will be known as the Jacob Fruitfield Food Group. The combined business will have sales of over €100m.
Jacobs' manufacture such famous brands as Kimberley, Club Milk, Fig Rolls and Cream Crackers. It supplies over 35% of biscuits sold in Ireland and generates sales of over €70m a year.
The acquired business includes ownership of the brands and a 27-acre site in Tallaght, with a substantial manufacturing facility.
Michael Carey, Group CEO of the Jacob Fruitfield Food Group, said the purchase of W&R Jacob would lead to a revitalisation of some of Ireland's most famous brands.
He said that over the last two years, Fruitfields Foods has successfully re-invigorated well known Irish brands such as Chef and Silvermints, establishing the business as a profitable and secure food manufacturer.
'We will now seek to similarly strengthen the W&R Jacob business through innovation, quality improvements and improved competitiveness,' he said.
Fruitfield Foods was formed in July 2002 after a management buy-in at the former Nestle Ireland plant. At that time, the business was loss making with losses of €1.5m on sales of €25m. After major changes, the new Fruitfield Foods became profitable in 2003 with pre-tax profits of €1.3m and pre-tax profits of €2.5m in 2004.
Meanwhile, United Biscuits said it was still waiting for competition authority approval for the purchase of the UK and Northern Ireland business of Jacob's Biscuit Group. UB said it believed its proposed purchase of the Jacob's business in Ireland may have raised a number of competition issues.
'We believe our decision not to purchase this business is the best outcome for the employees, the business and the market,' a statement from UB said.
