Monaghan Middlebrook Mushrooms and Carbury Mushrooms are expected to have combined annualised turnover of around 170 million euros from the sale of 40,000 tonnes of mushrooms and 5,000 tonnes of mushroom substrate or compost.
The two companies said that the merger of the loss making groups would help them move towards profitability. Monaghan said its losses for the 16 months to December 31 are likely to be 4.9m euros.
Carbury, a joint venture between Donegal Creameries and Connacht Gold Co-operative Society, incurred losses last year of around 1.7m euros after being ht by cheaper imports from continental Europe.
Donegal and Connacht will emerge with 23 per cent and 17 per cent stakes respectively, in the enlarged Monaghan.
John Keon, Donegal’s managing director, said: “We expect that the increased efficiencies achievable through the pooling of management skills, allied to the production and logistical economies arising of the increased turnover, can only be positive for our shareholders.
The enlarged Monaghan will employ 1,500 people and operate in six locations in the UK and seven in the Republic.
No comments yet