Dairy giants merge to form LacPatrick
Standing are; Gabriel D’Arcy, CEO LacPatrick Co-op; and Nigel Kemps deputy chief executive; with Hugo Maguire, chairman; and deputy chairman Roy Irwin
Two of Ireland’s oldest dairies have completed a “game changing” merger to form new company LacPatrick.
Ballyrashane Co-op and Town of Monaghan Co-op confirmed the completion of deal earlier this week, announcing plans for significant investments as part of their growth strategy.
LacPatrick will be led by a new board of directors comprising the former two boards, with a new management team headed up by Gabriel D’Arcy and Nigel Kemps – former CEOs of Town of Monaghan Co-op and Ballyrashane Co-op respectively.
Gabriel D’Arcy will be the new chief executive, with Nigel Kemps serving as deputy.
The newly merged company will have a combined turnover of £260m, (€370m) and employ 300 people.
Gabriel D’Arcy said: “We now have the scale and ambition to win in what is currently a very challenging and competitive marketplace.
“Given the volatility of global dairy markets, this merger further underlines the importance and significance of this ambitious move by our two companies.”
The move comes as another Northern dairy behemoth, Dale Farm, announced their profits have fallen by 50 per cent to £3.5m.
Northern Ireland’s dairy sector is currently undergoing a crisis, with the Assembly’s agriculture committee recalled from Stormont’s two-month summer recess to tackle the issue.
Changes to EU milk production quotas are believed to be behind depressed prices for farmers, with many family-run farms going out of business.
However, Mr D’Arcy remained confident that the consolidation of his firm with Ballyrashane Co-op would help both firms weather the current storm.
“Our shared geography and production facilities, technologies and customer listings, together with the combined balance sheet strength, offers a unique opportunity to create a true leader in the Ulster dairy food sector, focused on innovation and competitiveness,” he said.
“This merger is a platform for future growth for all associated with LacPatrick.”
Nigel Kemps added: “This merger is particularly necessary when we look at the state of the market and especially the poor returns paid to producers.
“The size and scale that we now have as a merged entity will ensure we can be more competitive, and achieve better returns.”
