Donworth Capital has completed a €4.5m deal to complete the management buy out of Cold Move Ltd, in the process securing a minority shareholding and placing John Casey of Donworth as Chairman of the Board. Cold Move provides temperature controlled and ambient supply chain management services to retailers, manufacturers, brand owners and food service operators. This secures over 100 jobs (60 direct employees) in four facilities based in Galway and Dublin, servicing customers in Ireland, the UK and Europe.
Managing Director Jason Mallon joined the business at its inception in 2005 and together with senior management has partnered with John Casey of Donworth to structure the acquisition which was part financed by Bank of Ireland. Cold Move recorded turnover of €7.6m in 2014 and is forecast for continued growth.
Donworth continues to successfully implement its strategy of investing in businesses with growth potential and providing strategic corporate advice to businesses on mergers, acquisitions and restructuring.
Jason Mallon of Cold Move comments, “We are now well placed to continue Cold Move’s development as a leader in the supply chain sector. The re-structuring brings expertise and a well-financed balance sheet, enabling the development of our business. The team would like to thank Donworth for their on-going support through the process and welcomes John as Chairman of the Board of Cold Move.”.
Donworth secures close to €1m in a fundraising exercise using the Employment Incentive and Investment Scheme (EIIS). This scheme allows individual investors to obtain income tax relief on investments made into EIIS certified qualifying companies and is a replacement for the former Business Expansion Scheme. Donworth’s partner in securing this investment was the accountancy firm DHKN (dhkn.ie) which has offices in Galway and Dublin.
These funds form part of the overall €3m investment Donworth has raised for investment in Galmere Fresh Foods and Taravale Foods. They enable Donworth to continue the rationalisation programme of these first two food enterprises while seeking future acquisitions which fit the company’s investment strategy and profile.
Donworth Capital is pleased to announce the acquisition of two businesses in the Irish fresh food production sector. The €3m investment will secure 80 jobs between the two concerns.
The company has concluded negotiations for the purchase of Galmere Fresh Foods (Galway). It has also successfully negotiated the purchase of Taravale Foods (Naas, Co Kildare) out of Examinership.
Galmere Fresh Foods, based in Ballybrit Galway, was founded in 1980 by chef JJ Coppinger. The company produces freshly prepared salads and soups. Taravale, founded in 1995 by Sean Fay, is based in Naas, Co Kildare and produces fresh salads, sandwich fillers and pesto.
Both businesses manufacture for major retailers and food service providers. The previous shareholders will remain with the businesses. These investments will secure over 80 jobs with an overall investment of €3m over a three year period.
Donworth Capital was established in 2012 by senior industry professionals John Casey and Peter Strange. Its strategy is to raise finance for investment in indigenous food producers, investing in people, production technology and support systems to maximise growth. The Donworth team has a long and successful track record in the food industry and a detailed understanding of retailers’ requirements both in product development and supply chain management.
John Casey, Managing Partner, Donworth Capital commented: “Both Galmere Fresh Foods and Taravale have been through extremely challenging times in recent months and this investment brings expertise and a well financed balance sheet to support their future development. These two companies have great potential to grow market share in Ireland and overseas.”
Issued on behalf of Donworth Capital by Tony O’Brien Communications – 087.2438 584
Further information also from Madeleine Cosgrove
Communications & PR Director, Donworth Capital
M 087 236 0041