Some of the Republic's best-known grocery brands have changed hands following the sale by Swiss multinational Nestlé of its manufacturing plant in Tallaght to a management buy-in team for a sum believed to be in the region of €20 million.
The Nestlé Ireland manufacturing plant, along with leading brands such as Chef, Silvermint, Double Centre, Scots Clan, Yorkshire Toffee and Fruitfield jams, has been sold to new group, Fruitfield Foods Ltd, a four-man consortium of management from outside the business.
The size of the transaction, announced yesterday, was not disclosed but it is believed to be worth around €20 million. The business has a turnover of €25 million, accounting for around 13 per cent of Nestlé's Irish sales last year.
The unit employs 140 people at its factory and offices in Tallaght. Fruitfield managing director Mr Michael Carey said there would be no job losses as a result of the buy-in.
Mr Carey is a former managing director of Kellogg's UK and Ireland.
Mr Gerry Murphy, former managing director in the Republic of German treasury bank HVB, is another member of the buy-in team and is finance director at Fruitfield.
Mr David Andrews and Mr Michael Tunney, both directors of Lioncourt Capital, complete the buy-in quartet and become non-executive directors at Fruitfield.
Mr Carey said he and the other members of the team would now work with existing management at the Tallaght-based business.
The new deal comes five months after the business was put on the market by Nestlé. The Swiss giant decided to sell the Irish business as part of a restructuring of its British and Irish operations as it focuses on core brands such as Kit Kat and Nescafé.
Initially, Nestlé planned to sell the Irish and British operations as one. British-based group Premier International Foods in May agreed to buy both businesses but, following an approach to Premier by the Irish buy-in group, it was agreed Premier would be relieved of its obligation to buy the Irish unit. Talks then commenced between Nestlé and the Irish group.
Mr Carey said he met staff at the plant yesterday and all were "delighted the company is now Irish owned".
"Everyone is aware of the great heritage and proud past of this business. We aim to ensure that its future, as an independent, privately owned Irish company is just as bright. With the continued committment of our employees, and the support of our trade customers and our loyal consumers, we are confident that the full potential of this business can be realised."
He said around 150 Nestlé staff connected with operations that were not sold as part of yesterday's deal will move from the Tallaght facility to Nestlé's premises at Citywest, where they will continue to manufacture Nestlé's core coffee and confectionary brands.
Nestle also owns a chocolate crumb manufacturing plant in Mallow, Co Cork, which employs 58 people. This plant is not affected by the sale of the Tallaght business.
The estimated €20 million transaction was funded by private equity and bank debt, Mr Carey said.
The company will begin trading as Fruitfield Foods Ltd next week.
