The country’s largest ice-cream maker, Silver Pail Dairy in Cork, will be bought out of examinership by a group of well-heeled local investors including brothers Paul and Niall Condon, the Irish Independent has learned.
iall Condon and other shareholders sold their Classic Drinks business, a wholesaler of wines and spirits, to Pallas Foods in 2019 for millions of euro. Limerick-based Pallas Foods is owned by US food giant Sysco Corporation.
Steve Dwyer was also a shareholder and director in Classic Drinks and is also involved in the Silver Pail Dairy rescue with the Condons.
Paul Condon’s Binate Digital agency was sold in 2021 to Cork-based marketing group Dyjaho. Binate’s other owners were Adam Hetherington and Mark Condon.
It’s understood that a scheme of arrangement filed with the High Court on Thursday confirms the plan to sell Silver Pail Dairy to a venture owned by Paul and Niall Condon and Steve Dwyer. The trio live in Cork.
A series of creditor meetings will be held next week where it’s expected the deal will receive approval.
The Irish Independent also understands that Thea Murphy, who has been managing director of Silver Pail Dairies, will continue to be involved in the business. Her father founded the business.
The ice-cream firm, which employs about 90 people, went into examinership just before Christmas. Shane McCarthy of KPMG was appointed examiner.
The ice-cream firm’s cash flows were hit by soaring energy and dairy costs. It had about €4m of bank debt at the time it got into difficulty, while other creditors were owed about €7m.
Mr McCarthy secured an extension to the examinership process in late January as he nailed down potential bidders.
The Cork trio saw off competition from a number of potential suitors to seal a deal to buy the firm. It’s thought that potential buyers included Lakeland Dairies and private equity firms.
Silver Pail Dairy was established by the Murphy family more than 40 years ago.
The Co Cork business started out making softwhip ice-cream for cones and later developed its product base.
The ice-cream business generates turnover of about €23m a year and counts major supermarket multiples among its customers.
Turnover at the firm is expected to hit about €30m this year and up to €34m in 2024.
While the business made a loss last year and in 2021, it is believed to have been in the black on an earnings before interest, tax, depreciation and amortisation basis.
Silver Pail’s customers include Tesco, Dunnes Stores and Musgrave, the company that controls SuperValu.
In 2021, the Cork company secured a €1.4m contract with Tesco to supply the retailer with own-brand ice-cream.
The ice-cream firm also makes frozen desserts, frozen yoghurt, and sorbets. It is thought that its clients also include the Irish arm of US ice-cream chain Baskin Robbins, which has outlets in Ireland and the UK.