Farm Ireland

Sunday 18 February 2018

Fresh Mills in negotiations to take over closed Farringtons

Caitriona Murphy

Caitriona Murphy

Fresh Mills Investments is in talks aimed at adding Farringtons Agri to its stable, which includes Liffey Mills, Drummonds and Fresh Grass.

However, the deal hinges on Fresh Mills securing the premises at Rathcoffey, Co Kildare, which is not owned by Farringtons.

The site, buildings, mill and fertiliser-bagging operation have been leased by Farringtons from the original owners, the Gilmartin family.

It is understood that the most recent lease has run out and negotiations continued over the weekend between Fresh Mills, Farringtons and the Gilmartins.

Aside from the critical site talks, it is believed that Fresh Mills has indicated that it is not prepared to take on the business as a going concern because of the possibility of historical claims against the business. When Fresh Mills took over the Drummonds grain business, the company had the security of warrants from Greencore.

Although the majority of staff at Farringtons had been let go before it closed, it is understood that some of those could be re-employed if the Fresh Mills takeover is successful.

Farringtons Agri takes in around 17,000t of grain every year and the mill has a production capacity for 60,000t of feed.

The fertiliser plant has the capacity to manufacture around 100,000t annually and fertiliser is sold under the Agrifert brand.

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Negotiations are expected to continue this week, with sources close to the deal hopeful of reaching a conclusion by this weekend.

Irish Independent