Manor Farm chicken firm sold to Swedes in €94m deal
Manor Farm, the largest chicken processor in Ireland, is being acquired by Scandi Standard in a deal that values the eighth-generation based business at €94m.
The consideration is a mix of cash, stock and a so-called earn-out that will be paid if Manor Farm hits targets following the sale.
Manor Farm which dates back to 1775, sources and processes approximately 50pc of all fresh chicken sold in the Irish retail market.
Around 130 farmers are currently contracted as chicken growers at the Bord Bia certified company, while a further 43 farmers are contracted as chicken breeders.
The company, which operates its own feed mill close to its processing plant in Shercock, Co Cavan employs over 800 staff.
At the end of 2016, Manor Farm, which is owned through an unlimited company, had revenues of €164m and earnings of €13m last year.
Sweden's Scandi Standard will pay €36m including cash and the assumption of outstanding debt.
Further payments of up to €25m will be made under an earn-out agreement that runs to 2020.
Brothers Vincent and Justin Carton, who own 85pc of Manor Park, will also get a combined 9.99pc of Scandi Standard under the deal, and remain to head up the Irish business under the earn-out agreement.
Vincent Carton said Manor Farm had found a partner that will "build on our strong relationships with customers, employees, suppliers and the broader communities in which we operate".
"They understand our business and our commitment to our people.
"We're the best at what we do, and Scandi Standard is committed to continuing that," he said.
Headquartered in Stockholm, Scandi Standard sells Swedish, Danish, Norwegian, and Finnish chicken under the Kronfågel, Danpo, Den stolte Hane and Naapurin Maalaiskana brands.
In May it reported operating income of SEK 58.1m (€5.95m) for the first three months of 2017.]
This was down 14pc on the same period in 2016.