Business Irish

Tuesday 11 December 2018

Pat the Baker forked out €4.5m for a slice of Irish Pride

Pat the Baker paid €4.5m for rival baker Irish Pride in 2015 and is now one of Ireland’s biggest bakery groups. Stock image
Pat the Baker paid €4.5m for rival baker Irish Pride in 2015 and is now one of Ireland’s biggest bakery groups. Stock image
John Mulligan

John Mulligan

Longford-based Pat the Baker paid €4.5m for rival Irish Pride, the bakery that went into receivership in 2015, recently filed documents reveal.

The deal created one of the country's largest bakery groups.

Irish Pride had been sold for a reported €6m by investment group One51 in 2014 to WHW Bakeries, controlled by Dublin-based investors Garret and William Lloyd.

Declan Taite and Pearse Farrell of Duff & Phelps were initially appointed receivers by original Irish Pride lender Close Brothers in June 2015.

Just a week later, US private equity group Gores bought loans attached to Irish Pride and replaced the receivers with Kieran Wallace and Shane McCarthy of KPMG.

A number of bids were made for the Irish Pride business, with Pat the Baker winning out.

Family-run Pat the Baker, famous for its catchy jingle and 'So Fresh it's Famous' slogan, now employs more than 600 people, directly and indirectly.

The price Irish Pride was sold for was not revealed in 2015.

But recent receiver reports filed in the Companies Registration Office show that €4.5m was paid for the business.

An Irish Pride site in Ballinrobe, Co Mayo, was separately sold towards the end of 2015, for €360,000. The closure of that plant resulted in the loss of about 60 jobs.

An Irish Pride plant in Taghmon, Co Wexford, that employed about 250 people, was acquired by Pat the Baker as part of the overall deal. That plant remained open.

The latest receiver report for Irish Pride shows that €1.7m was transferred to a secured creditor in the second half of this year. That same report also lists the payment by Irish Pride Bakeries of a €137,500 "settlement claim".

Irish Independent

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