One of the county’s most recognisable brands and sponsors of the GAA county team - Donegal Creameries - has sold its milk business and retail stores to Connacht Gold Co-op.
The completion of the proposed transaction is subject to Competition Authority Approval. Connacht will pay Donegal Creameries €13.5m, and further contingent earn-out payments of up to €7.4m dependent on the operating and financial performance of the Milk Business in 2012. Connacht, headquartered in Tubbercurry, Sligo, said the acquisition will include Donegal’s 120m litres milk pool, liquid milk processing facility at Killygordon and 11 retail stores - nine in Donegal and two in Northern Ireland.
PJ McMonagle, Chairman of the Donegal branch of the IFA said that the news had been welcomed by Donegal dairy farmers. The ‘Farmers Journal’ had indicated that NCF had been paying milk suppliers higher prices than Donegal Creameries for a number of years and this could only be a good thing. “The two co-ops joining together is also the way forward and will give greater market access to all. It can only be positive,” he told the paper.
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