Food group buys W&R Jacob

Fruitfield Foods Ltd has announced the acquisition of W&R Jacob, the biscuit business owned by the Danone Group in Ireland.

The purchase includes Kimberley, Mikado, Coconut Cream, Club Milk, Fig Rolls and Cream Crackers biscuits.

The purchase price was not disclosed.

W&R Jacob supplies over 35% of biscuits sold in Ireland and generates net sales of over €70m per annum, including exports of over €10m, mainly to the UK.

The acquired business includes ownership of the brands and a 27-acre site in Tallaght with a substantial manufacturing facility.

The 430 people who are currently employed at W&R Jacob will transfer to the new merged company, which will be known as The Jacob Fruitfield Food Group.

The combined business will have sales of over €100m and total net assets of €94m (before financing).

Michael Carey, Group Chief Executive of The Jacob Fruitfield Food Group, said the purchase of W&R Jacob will lead to a revitalisation of some of Ireland's most famous brands.

Mr Carey said: "We are delighted that we are purchasing a business with so many quality Irish products, and such a dedicated and expert workforce. The brands include some of the strongest and most popular in the Irish grocery sector, providing a secure base for future development.

"Over the last two years, Fruitfield Foods has successfully re-invigorated well-known brands such as Chef and Silvermints, establishing the business as a profitable and secure food manufacturer. We will now seek to similarly strengthen the W&R Jacob business through innovations, quality improvements and improved competitiveness.

"We are confident that with the continued commitment of the employees and loyalty of our customers these two great old businesses with a heritage in quality food will have a bright shared future," said Mr Carey.

Fruitfield Foods was formed in July 2002 following a Management Buy-In at the former Nestle Ireland.

At that time the business was loss making, losing €1.5m on sales of €25m.

Following changes, the new Fruitfield Foods became profitable in 2003 (reporting €1.3m EBITDA) and progressing further in 2004 (estimated EBITDA of over €2.5m).

Brands under the Fruitfield Foods banner include Chef, Silvermints, Fruitfield, Old Time Irish, Scots Clan and Double Centre.