Ion group in €200m takeover talks

ION Equity is in talks with Reox Holdings that could lead to the €200 million purchase of its consumer brands that include Galtee, Dairygold, Mitchelstown, Shaws and Calvita.

These became part of Reox which was formed out of Dairygold Co-operative last year.

None of those linked to the deal have commented publicly but Ion are engaged in early stage discussions with Reox that could lead to a deal, although that is not certain, according to sources. The brands are worth an estimated €200m.

Recently Reox said it received an unsolicited approach for the Irish consumer division. However, the deal is far from done, and it is understood Reox is not in a rush to sell unless it represents good value for its shareholders.

It is expected that Reox, since it has had an approach from Ion, owners of the wind and waste management group SWS, based in Bandon, Co Cork, will now try to establish if the move has sparked broader interest from other group’s in the Irish consumer division. Ion is led by financier Neil O’Leary and is behind the Topaz consortium, which followed its acquisition of Shell’s fuel distribution in Ireland with the takeover of its rival, Statoil Ireland.

A spokesman for Reox has stressed however that “there was no for sale sign on the business” and the approach was unlikely to lead to a rushed sale of the Irish consumer division which is managed by Breeo Foods. The Reox food division has been selling off assets however and has also announced expansion plans for its Dutch operations.

Reox said it would invest €50m in Breeo Foods by the end of 2007 and would expand activities in the Netherlands. In August the division sold the ice cream business of its distribution subsidiary Superchill to Northern Ireland dairy company Dale Farm giving it the west of Ireland distribution rights to the Mars and Häagen-Das brands.