Donegal Creameries has agreed to sell its milk and retail businesses to the Connacht Gold Co-op. The deal is subject to approval by the Competition Authority.
Connacht Gold will pay €13.5m in cash for the businesses, with further payments of up to €7.4m dependent on the performance of the milk business this year.
The co-op said the deal involved Donegal Creameries’ 120 million litres milk pool, a liquid milk processing facility at Killygordon and 11 retail stores - nine in Donegal and two in Northern Ireland. The stores mainly sell fertiliser, feeds and other products to farmers.
Connacht Gold chief executive Aaron Forde said the acquisition was part of its strategy to expand its consumer foods, dairy ingredients and retail businesses.
Donegal Creameries managing director Ian Ireland said the company would focus on its key strategic areas of seed potato and niche dairy products, as well as maintaining its animal feeds business and its property investments.
Last year, the businesses being bought recorded turnover of €69.3m and net profits of €1.85m.
