21 Sep 2018 | 10.02 am
Musgrave To Acquire Donnybrook Fair
Doyle family sell their five Dublin stores
21 Sep 2018 | 10.02 am
The acquisition includes Donnybrook Fair’s five premium food stores in Donnybrook, Baggot St, Stillorgan, Malahide and Greystones, as well as a food production facility.
Donnybrook Fair, founded by Joe Doyle, had been talks with Dunnes Stores about a takeover but those talks broke down recently. Doyle is remaining in the business after the acquistion.
Musgrave CEO Chris Martin commented: “Donnybrook Fair represents a fantastic addition to Musgrave. With its focus on creating a destination retail experience as well as a premium food offering, it aligns with our Growing Good Business strategy.
“We are focused on developing opportunities around every food occasion in a growing market. This included the purchase of La Rousse Foods earlier this year, broadening our offer into the premium foodservice sector. Donnybrook Fair increases our penetration of the Dublin food market and our intention is to maintain and grow the brand for the long term. We are looking forward to taking it to the next stage of development.”
Joe Doyle added: “We established Donnybrook Fair as a brand devoted to bringing great food experiences to people. Musgrave is as passionate as we are about the heritage and future of Irish food.
“I was attracted by Musgrave’s values and its approach to investing in its brands and team for the long-term. We share Musgrave’s vision to give people access to high-quality and innovative food experiences at home, on the go, or in-store. I look forward to working in partnership with the Musgrave team to grow the Donnybrook Fair brand.”
Joe Doyle (66) opened his first butcher shop when he was 17. In 1991 he secured a premises on Morehampton Road in Donnybrook and started to develop the Donnybrook Fair brand, with Londis as the initial wholesale supplier. He opened a store on Baggot Street in 2004, followed by stores in Greystones, Stillorgan and Malahide.
The business also operates a wholesale food business, Morehampton Foods, complete with a production kitchen. Donnybrook Fair also operates a cookery school, and a catering business. The company employs 250 people in total.
Donnybrook Fair Financials
Donnybrook Fair Ltd increased turnover by 15.7% to €27.7m in the year to end January 2107. The gross profit for the year was €9.4m, for a gross profit margin on 33.8%.
Operating profit for the year was €490,000 and interest payable on borrowings was €525,000. The company booked a €420,000 profit on the sale and leaseback of its Greystones store, resulting in pre-tax profit of €390,000 compared with a loss of €376,000 in 2015/16.
Net cashflow from operations was €1.8m, down from €2.3m the previous year.
In financial 2016/17, Donnybrook Fair Ltd reduced bank borrowings from €10.3m to €7.1m, though the company also sourced €1.8m loan finance from an unidentified investor.
In 2014, the company refinanced its loans from Bank of Scotland with Bank of Ireland. The bank has a personal guarantee from Joe Doyle and his wife Mary, 50/50 owners of the business, in the amount of €6.3m.
The company, advised by accountants JPA Brenson Lawlor, had total liabilities of €15.4m on 31 January 2017. Net worth on that date was €2.5m, including €1.5m in goodwill. Year-end balance sheet cash was €50,000.
Photo: Joe Doyle pictured with Just Eat’s Amanda Roche-Kelly