One51 puts Irish Pride up for sale

One51, the investment group spun out from IAWS Co-op in 2005, has decided to put Irish Pride, the owner of Ireland's second best-selling sliced pan, up for sale. This follows in the footsteps of the board's new two year plan, unveiled at last September's AGM, which includes;

Improve business performance and reduce debt levels;

Focus on businesses that complement their core strengths and strategic plan;

Dispose of non-core assets/business.

Irish Pride reported a turnover of almost €60m for 2010, down 4.4% on the previous year. While this business remains profitable and a reliable cash earner, profit margins have been squeezed in recent years.

It is expected to sell for in the region of €20m.

Irish Pride has bakeries in Taghmon, Co Wexford and Ballinrobe, Co Mayo and employs over 400 people.

Irish Pride is the only food business within One51 and therefore is clearly classified as non-core business.

It is run by Theresa Lynch, a daughter of One51's former CEO Philip Lynch.

Other disposals are expected during the coming year.

One51 reported a net loss of €104m for 2010 and retained net debt of €147m.

The company had a net debt to EBITA ratio of 3.1 times, which is considered too high by the board.

One51's board will be watching with interest NTR's plans to sell Greenstar Ireland, its waste management business, which is expected to fetch over €100m. One51 holds a 24.5% stake in NTR.