Merger sprouts European mushroom giant
Donegal Creameries is to create Europe's largest mushroom company with the merger of its Carbury Mushrooms joint venture with Connacht Gold Co-Operative Society and Monaghan Middlebrook Mushrooms Limited.
The merged entity will trade under the Monaghan name.
The new company will manufacture approximately 5,000 tonnes of mushroom substrate and sell 40,000 tonnes of mushrooms annually to customers in the UK and Ireland.
It will employ approximately 1,500 people and operate out of six locations in the UK and seven in both the Republic and Northern Ireland.
New Monaghan shares will be issued to Carbury shareholders in return for their Carbury shares.
Carbury shareholders will own 40% of Monaghan, with Donegal and Connacht Gold owning 23% and 17% respectively.
The sale of properties no longer needed by both companies may net the group €2.6m, according to Donegal management.
Two Donegal nominees and two Connacht Gold nominees will be appointed to the Monaghan board of directors.
Shortly afterwards two independent nominees will be appointed to the Monaghan board of directors, resulting in an overall board size of 10.
Donegal managing director, John Keon, commented: "We expect that the increased efficiencies achievable through the pooling of management skills, allied to the production and logistical economies arising out of the increased turnover, can only be positive for our shareholders."
