Fane Valley takes majority stake in Linden Foods

By Eric Donald

Fane Valley co-op has increased its stake in Linden Foods, the Dungannon-based meat processor that owns half of Slaney meats. Fane Valley already owned 39.4% of Linden Foods, and this week they purchased a similar sized shareholding held by Ulster Farm Investments Limited, making them the largest shareholder in Linden.

A price of Stg£3million was paid which puts a value of over Stg£7.5million on the entire Linden business.

This deal means that Linden will remain in farmer control.

Chairman of UFIL Derek Shaw said it's a matter of great satisfaction that the UFIL interests are being taken over by another co-operative of the highest calibre. Ulster Farm Investments Limited was set up in 1974 following the beef crisis.

Linden was formed from the merger of Granville meats and Milltown Livestock and Meat Company in 1998. Then in 2000 they took a 50% stake in the Wexford-based Slaney Meats group for Stg£3million in loan notes, giving them their first meat processing presence in the Republic.

Ulster Farm Investments will use the proceeds either to invest in a new project or return some to its shareholders.

Fane Valley's primary business is Aramaghdown Creameries but they also have interests in a livestock mart and an oat milling business. In 2002 the co-op's profits were Stg£10.4million boosted by a once off gain of Stg£7.7million from the spin out of IAWS shares.