Meat processor Larry Goodman's company has raised almost $140 million (€118 million) from the US private placement market in a major fund raising exercise.
Mr Goodman is the main shareholder in the unlimited company Irish Food Processors, which is raising the funds. It is one of the largest beef processors in Europe and operates 20 facilities through subsidiaries like Anglo Irish Beef Processors Ltd.
A spokesman for the company said it has availed of very attractive interest rates. "The funds raised are for general business purposes, although there are no immediate plans to put the funds to use," he said.
It is understood Irish Food Processors originally intended to raise €100 million, but following a strong response, decided to increase the amount. The company was viewed as a good credit risk by the US market. This means it can borrow money at more attractive rates than in Europe or Ireland.
The agents for the deal were Barclays Capital, which has arranged several deals for Irish companies during 2005.
The US private placement market is becoming increasingly popular with Irish companies. Most recently it was disclosed that the Quinn Group raised €496 million in the US. It is understood that building materials group Kingspan raised about €350 million there in 2004.
Mr Goodman has operations in England, Scotland, Northern Ireland and Jersey. In recent years his companies benefited from the huge culling programme instituted during the BSE crisis. Mr Goodman has also several substantial contracts with fast food chains like Burger King and retailers like Superquinn, Asda and Sainsbury.
Mr Goodman has also benefited greatly from several property transactions. Recently, he booked an unrealised surplus of more than €37 million after three of his investment properties in central Dublin were revalued.
The properties concerned were Setanta Centre in Nassau Street, buildings at 4-5 Harcourt Road and buildings at 76-78 Harcourt Street.
Mr Goodman receives annual rents of €3.22 million from the Government under five 35-year leases agreed in 1976-1978 and a 16-year lease agreed in 1995 for the use of the Setanta Centre building. He also receives annual rents of €1.19 million from the Government for the lease of 4-5 Harcourt Road under a 35-year lease agreed in 1980.
Accounts recently filed for the companies which manage these investment properties for Mr Goodman showed they were re-valued in 2004.
Mr Goodman has recently been issuing strong statements on the future of his industry. He warned that WTO reforms could "decimate" the beef industry in Europe. He said most beef coming into the EU from Brazil was in fresh, not chilled form, and this development challenged European markets. Mr Goodman was part of an Irish Farmer's Association delegation that met Taoiseach Bertie Ahern about the issue in November.
