Melior Equity Partners, the private-equity outfit led by former Irish managers with US investment giant Carlyle Group, has agreed to invest in Co Offaly-based Rose Confectionery group, the firm said in a statement on Monday.
Details of the deal have not been made publicly available and a spokeswoman declined to comment.
However, it’s understood that Melior’s initial investment in Rose will be worth between €10 million and €15 million. It will “support future growth of the business” and allow it to pursue “opportunities for international sales”, the companies said on Monday, and will also allow Rose to make a “significant investment in its manufacturing capabilities”.
Melior co-founder Peter Garvey and managing director Jonathan Dalton will join the board of the confectioner following the transaction, the two companies said. The Rose management team will remain unchanged, with managing director of manufacturing Phelim Daly, UK marketing director Steven Watt and group chief executive and managing director Richard Kennedy, who also owns 55 per cent of the company’s shares, to remain in situ in their roles and as shareholders.
Founded in 1983, Edenderry-headquartered Rose makes and distributes a range of confectionery, snacks and freeze pops, including Sun Exotics savoury snacks and Eurobags sweets brands. It also has licensing agreements with brands such as Fruit Shoot, Slush Puppie and Vimto.
Rose employs a total of 87 staff, 33 at its manufacturing facility in Co Offaly, 27 at its distribution centre in Dublin and another 27 at its facility in Scotland. Rose Holdings, the group parent company, generated pretax profits of almost €850,000 in 2020, according to its most recent set of accounts, and had accumulated profits of nearly €6 million by the end of that year.
Commenting on the announcement, Mr Kennedy said Melior – which has previously invested in other Irish food companies such as Lily O’Brien’s chocolates and Carroll Cuisine – have the “right team” to help Rose achieve its “ambitious growth plans” over the coming years.
In a statement, Mr Dalton said the Melior team was excited to partner with the Rose team, who have “grown the company into a highly successful confectionery and freeze business with a unique set of licence relationships, tremendous distribution channels and a wide client base comprising supermarkets, discounters, convenience stores and wholesalers”.
He said: “Through its consistent focus on innovation, the business has been growing at over 20 per cent a year and we believe that we can help the Rose team continue their impressive growth trajectory. Rose is making a significant investment in its manufacturing capabilities in Edenderry and we will invest to expand the portfolio of licences and product categories.”
Following the completion of investments in BHP Insurance in 2021 and Salmon Software in April, Rose the third investment from Melior’s €160 million Equity Partners Fund II.
