Barry’s Tea in joint venture deal

BARRY’S TEA has entered a joint venture arrangement with Bank of Scotland’s ICC Venture Capital arm to spend €62.25m to buy Batchelor’s and Beck Smith, the Irish operations of British giant Northern Foods.

The deal is subject to clearance from the Competition Authority but as there are no overlaps with the existing Barry’s Tea operation, the deal is expected to get the go-ahead.

The surprise elements of the deal are the 50:50 split agreed by Barry’s with ICC Venture Capital and the massive €33m in accumulated cash balances held by Batchelor’s, for which the joint venture vehicle Maiden Acquisition Company Limited will also have to compensate Northern Foods.