Business Irish

Sunday 23 September 2018

Kepak joint venture paid €2.4m for Greene Farm assets, report shows

A consortium including Kepak and Roscommon firm Oliver Carty are understood to have paid €2.4m last year to buy one of Ireland's largest chicken-meat producers, Greene Farm Foods. Stock Photo
A consortium including Kepak and Roscommon firm Oliver Carty are understood to have paid €2.4m last year to buy one of Ireland's largest chicken-meat producers, Greene Farm Foods. Stock Photo
John Mulligan

John Mulligan

A consortium including Kepak and Roscommon firm Oliver Carty are understood to have paid €2.4m last year to buy one of Ireland's largest chicken-meat producers, Greene Farm Foods.

The assets of Green Farm Foods Ltd were sold by receiver Michael McAteer of Grant Thornton in early 2017, but the sale price wasn't revealed.

But a newly-filed receiver's report shows that €2.4m was generated from the sale of assets to the Kepak venture.

In 2016, Kepak and Oliver Carty formed a joint venture to acquire a majority stake in Co Westmeath-based Greene Farm Foods.

The planned deal was hailed then as having the potential to unlock significant synergies. Greene Farm managing director Ken Greene said at the time that the brand would continue to be developed, and the deal would bring a "new developmental dynamic". But negotiations collapsed in the final stages.

Mr McAteer was subsequently appointed receiver over certain assets of Green Farm Foods Ltd, which traded as Greene Farm Foods, by Ulster Bank. The Kepak and Oliver Carty venture said that the appointment came as a result of the "failure of initial negotiations" between themselves and Greene Farm Foods.

The joint venture later confirmed that it acquired the assets and business of Green Farm Foods Ltd from the receiver.

Mr Greene started the firm in 1991. It posted turnover of €28.1m and a €310,000 profit for 2015.

After expanding in 2013, the firm later invested more than €6m in extending its production facilities, and €1.3m in packaging machinery.

Kepak, one of Europe's largest meat-processing firms, is controlled by the Keating family.

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