Potential deal for Irish Pride Bakeries on cards

01 July, 2015

Irish Pride Taghmon site

It is rumoured that a rescue-deal for Irish Pride Bakeries is under way, after it went into receivership last month.

Local newspaper, The Wexford People, reported that suppliers and transport companies had been told a deal is under way, although no details have been made public.

The potential deal is thought to involve Hovis, after The Gores Group, which owns a 51% stake in Hovis Limited, secured the debt facility of Irish Pride from the appointed receivers last month. The group then appointed KPMG as receivers of the company.

Irish Pride employs 340 people across two sites in Taghmon, Co Wexford, and Ballinrobe, Co Mayo.

Both KPMG and Hovis have been contacted about the potential deal.

Local newspaper The Mayo News published a letter that went out to staff about the receivership status. In the letter, managing director of Irish Pride John Keenan said: “It is with considerable regret that the directors of Irish Pride wish to advise that it is anticipated that the company will later today (11 June) come under the control of a receiver.

“We are assured that this change in control will not result in interruption to trading.

“This development comes against the background of difficult trading over time, and results ultimately from particular market and cost pressures.”

One51 sold Irish Pride for a reported €6m (£4.6m) early last year to WHW Bakeries, controlled by Dublin-based investors Garret and William Lloyd.

Gores Group paid £30m in 2014 for a 51% stake in Hovis, buying the stake from Premier Foods, which remains a minority shareholder in the business. Gores said at the time it could back further acquisitions by Hovis.





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