Breeo sale could bring in €200m

THE possible sale of the Irish consumer foods business of Breeo Foods could realise more than €200 million, industry sources predicted yesterday.

Parent company Reox Holdings confirmed there had been an unsolicited approach seeking to negotiate the acquisition of the subsidiary.

It did not reveal the identity of who had made the approach.

Breeo Ireland has an annual turnover in excess of €240m and operates across all retail trade channels on the island.

These trade channels include multiples, retail convenience, food service and food-to-go. It is almost all an entirely branded business which owns a portfolio of leading Irish brands in its market categories.

Reox, which was spun out of Dairygold Co-op last year, has some 7,500 registered shareholders and is also the parent holding company of 4Home Superstores and Alchemy Properties.

Reox chairman John Walsh said the board — in keeping with its duty and fiduciary responsibility to shareholders — will need to consider the details and implications of the approach both cautiously and very carefully to fully assess all the considerations and options arising, noting that “it’s business as usual” for the company.

“Ultimately, consideration of a possible sale of all or part of the business, if it were to arise, would only be countenanced if it were to represent a substantial and compelling value benefit for shareholders,” he said.

Reox Holdings said its Breeo Foods business is performing strongly and that it has achieved great progress over the last few years by “engineering” the business into a lean and highly competitive food company with strong innovation energy.

In line with its business strategy, Breeo has now become two distinctively different food businesses with operations in Ireland and Holland, both pursuing aggressive growth plans for their respective markets, including acquisitions in each market.

It said that over the past three years the cost base for Breeo’s Irish operations have been significantly rationalised and the business has achieved major transformation.

Key brands include Shaws, Galtee, Roscrea, Dairygold, Mitchelstown, Xtreme, Calvita, Sno, ‘Be’ and Bellini & Blake.