Donegal Investment Group is to sell its Smyths Daleside Animal Feeds business and Burke Shipping business to Fane Valley co-op for €17.25m.

The deal is on a cash and debt-free basis.

The proceeds from the sale will be used by Donegal for general corporate purposes.

Smyths manufactures animal feeds from Ballindrait, Co Donegal, and sells them across the north and northwest of Ireland.

Burkes is an independent port agency business based at Lisahally Port, and provides port agency, stevedoring, warehousing and customs clearance services to a range of clients involved in importing and storing feed and other bulk materials.

Profit

In its last financial year to the end of August 2018, the businesses made a pre-tax profit of €1.99m on turnover of €35.5m. The businesses had net assets of €21.8m.

Completion of the proposed transaction is subject to approval by the Competition and Consumer Protection Commission.

Ian Ireland, managing director of Donegal Investment Group, said the company will continue to support the growth plans of its speciality dairy business Nomadic, as well as continuing the strategic review of the remaining businesses and assets of the company with the objective of maximising value for all shareholders.