DCC acquires Allied Foods

DCC plc has announced that, following clearance from the Competition Authority in Ireland, its Food & Beverage division has completed the acquisition of 100% of Allied Foods Limited.

DCC first invested in Allied Foods in 1989 and has owned 50% of the voting share capital and 51.5% of the total share capital of Allied Foods’ holding company, Millais Investments Limited, since 1998.

DCC is now acquiring the other 50% of the voting share capital and the other 48.5% of the total share capital for €14.5m.

Allied Foods is a leading player in the Irish chilled and frozen food distribution market with substantial operations based in Dublin and Cork.

Its subsidiary, Allied Logistics, is the leading temperature controlled logistics provider to some of the largest food retailers and suppliers in Ireland. It has 237 full-time employees.

Allied Foods is generating operating profits of approximately €3.5m per annum and is unborrowed with a modest cash surplus. The assets of Allied Foods include a temperature controlled distribution facility of 155,000 square feet on a 10 acre site in Dublin and a temperature controlled distribution facility of 30,000 square feet on a three acre site near Cork city.

The consideration of €14.5m represents a multiple of 8.5 times operating profits.

Mitchel Barry, who founded Allied Foods in 1989 and who has led its success, will continue as chairman and chief executive and John Casey will continue as managing director of Allied Logistics.