The owner of Largo Foods has sold a majority stake in the Irish food manufacturer in a deal likely to be worth more than EUR45m (US$63.9m).
Ray Coyle is selling a 25% stake in the Tayto crisps maker to German snack manufacturer Intersnack, which already owns 15% of the company.
Coyle is also selling an 11% stake in Largo to a private German investment company, with an option to buy that back in three years.
According to The Sunday Times, Coyle said the moves would give him access to new capital that will allow the company to grow in Ireland, the UK and China.
Part of the proceeds will also be used to reduce debt. The company has been paying down the EUR11m debt it acquired from when it bought the Tayto brand in 2006.
“I will grow this company by at least 8-10% a year in exports,” Coyle said. “In five years’ time, this company will be doubled in size. I will have a smaller part of a bigger company. I can’t go any further here in Ireland without more capital.”