Virginia International Logistics, the warehousing and freight transport business, has agreed to buy Kilkenny-based freight firm Allmed in a deal that will create a new logistics group with €70 million in annual revenues.
The deal, financial details of which have not been disclosed, is subject to approval from the Competition and Consumer Protection Commission (CCPC).
In a statement, the two companies said the tie-up will create a one-stop shop in the Republic for transport, distribution and warehousing services. “This is an important strategic and complementary acquisition which will allow us to build on the momentum we have generated over recent years,” said Ray Cole, chief executive of Virginia Transport.
Speaking to The Irish Times, Mr Cole said Allmed provides supply chain services for companies moving goods from Ireland to Europe and in the opposite direction, including frozen and chilled goods. These so-called “cold-chain” services are becoming increasingly important, he said, as supermarkets continue to widen the variety of foods they carry on their shelves and buy products from further afield.
“It suits a lot of customers in Ireland that sell that sort of product,” he said. “So we see that growing a lot.”
Founded by the Cole family in 1982, Virginia Transport operates a fleet of more than 125 trucks and 360 trailers across Europe and the UK. The group generated revenues in excess of €37 million in 2022, according to its most recently available annual accounts, and also operates warehouses in Cavan, Meath, Dublin and Tamworth in the UK.
Allmed, meanwhile, is based in Thomastown, Co Kilkenny and is owned by Alan and Alison Hoyne. Mr Hoyne said Virginia Transport is a “perfect fit” for his company. “We could not be entrusting our business to better people,” he said.
The acquisition is backed by MML Capital, which took control of Virginia Transport in 2022 after receiving clearance from the CCPC, and Virginia’s banking partner, Bank of Ireland, the company said.
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Cofounded in London in 1988 by Rory Brooks and Jim Read, MML Capital has approximately €2 billion of assets under management. It entered the Irish market in 2013, with Neil McGowan and former TVC Holdings director and Dalata chairman Rory Quirke serving as co-chief executives of the Irish entity.
MML typically invests between €5 million and €20 million in businesses, using them as a platform to acquire other companies. It recently completed its ninth successful exit from an Irish company in July, selling its stake in Eastland Engineering Supply, a Dublin-based supply chain management company, for a large return on its original investment.