REG - Donegal Investment - Disposal of IPM Potato Group Limited

Donegal InvestmentAnnouncement

02/10/2025 08:15

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RNS Number : 7275B  Donegal Investment Group PLC  02 October 2025

 Disposal of IPM

 

Donegal Investment Group ("DIG") announces that it has reached agreement to
sell its seed potato businesses, IPM Potato Group Limited, AJ Allan Limited,
IPM Portugal Limited, IPM France Limited, IPM Holland Limited and IPM Kenya
Limited, collectively referred to as "IPM" to the Royal HZPC Group ("HZPC")
("the Disposal").

 

HZPC is an international market leader when it comes to potato breeding, seed
potato trading and product concept development based in the Netherlands

 

IPM is an agile and innovative agri-tech business developing potato genetics
to create value-added varieties. Seed production takes place in dedicated
growing areas including Scotland, England, Ireland, France, Holland and Kenya.
IPM has over 40 proprietary potato varieties including names such as Rooster,
Burren, Banba, Slaney, Nectar and Electra which it produces and exports to
over 40 countries world-wide.

 

In the year ended 31 August 2024 IPM had Profit After Tax of €2.3m. The
carrying value of IPM in DIG's annual report for the year ended 31 August 2024
was €12.4m.

 

The overall transaction value for IPM is:

(1) €16.5m of cash consideration (including €2.5m to be held in Escrow for
2 years) on completion ("Initial Consideration"), subject to customary
completion accounts adjustments, and

(2) A further contingent deferred cash consideration of up to a maximum of
€4m dependent on the financial performance of IPM for the period 1 September
2025 to 31 August 2027, inclusive ("Deferred Consideration").

 

Subject to completion of the Disposal it is expected that a substantial
proportion of the proceeds will be returned to shareholders in due course in
line with previous practices.

 

Commenting on the transaction, Mr. Geoffrey Vance, Chairman of DIG stated that
the disposal of IPM at this stage is in the best interest of all shareholders
and provides IPM an opportunity to grow further within the market leading
Royal HZPC group. He thanked the management and staff at IPM for their great
work over the last few years and wishes them well for the future.

 

The Disposal is subject to:

 

·    Approval by certain competition authorities

·    Approval by shareholders of Donegal Investment Group

 

The board of directors of DIG will shortly call an Extraordinary General
Meeting to propose the sale of IPM to Royal HZPC Group. A circular will be
prepared and sent to shareholders providing further details on the Disposal.

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

END

 

Contacts

Mr. Padraic Lenehan

Director

Donegal Investment Group

Tel: 0749121766

 

Anthony Farrell

Davy Corporate Finance

Tel: + 353 1 679 6363

 

This Announcement contains inside information and has been issued pursuant to
Article 2.1(b) of Commission Implementing Regulation (EU) 2016/1055

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