The firm which had gone into examinership after Ukraine war broke out
Source: Irish Independent
West Cork Distillers has acquired Donohoe Drinks, a Waterford-based contract bottling and blending company, saving around 105 jobs following a period in examinership.
Multiple sources involved say the deal to buy Donohoe Drinks’ parent company, Admiralford Ltd, will see its creditors paid in full. The examiner, Padraic Bermingham of Strata Financial, said the lifting of court protection was dependent on all creditors being paid what they were owed.
John Kickham, the former CEO of Donohoe Drinks, confirmed West Cork Distillers had acquired the business, allowing the company to continue and saving jobs. He described the deal as a “major investment” from West Cork Distillers.
“As an outgoing director and shareholder, I am delighted that all creditors are to be paid in full and that all jobs are safe, and that the future for the business is very bright,” he said.
The company ‘has a reasonable prospect of survival with the court’s protection, with the agreement of its creditors’
“This was our hope in entering the process, and it’s through the professionalism of the examiner and the company’s legal and advisory teams that this outcome has been achieved.
“I would like to say heartfelt thanks for the support we received from our loyal customers, staff, suppliers and bankers without whose patience this process might not have had such success. As outgoing owners, we wish a great company and its new owners every success for the future.”
Admiralford sought court protection in April. The courts were told the loss of the Russian market and the rise in energy costs that followed the invasion of Ukraine were reasons behind the company seeking to appoint an examiner.
According to a report in the Irish Examiner, Dessie Morrow, of Azets, Dublin, claimed the company had a reasonable prospect of survival with the court’s protection, and with the agreement of its creditors. He described recent years for the business as challenging.
Donohoe Drinks, run by the Kickham family, blended, bottled, and labelled alcoholic beverages at its premises in Co Waterford.
The company specialises in bottling premium whiskeys for several popular Irish brands, including Midleton Very Rare, Redbreast, and Paddy. It also works with international Irish cream liqueur brands.
Bermingham said West Cork Distillers saw the opportunity in the business.
“A very good business has been saved, and very good operators in West Cork Distillers have come in,” he said.
We’re excited about growing activity at Donohoe Drinks, a spokesman said
A spokesman for West Cork Distillers said the company was delighted with the acquisition and was excited about growing activity at the Donohoe Drinks business.
West Cork Distillers’ financial results for 2022 show the company recorded sales of over €51.7m, down slightly from €54.2m the previous year.
The business also reported a fall in profit, which went from €3.8m to almost €893,000.
However, earnings before interest, taxes, depreciation, and amortisation (Ebitda) were almost €9.3m. The business employed a monthly average of 114 staff across 2022.
West Cork Distillers was founded in 2003. It also distils spirits for other Irish and international brands.
Its latest distillery on Marsh Road, Skibbereen, opened in 2020 on a 12.5-acre site.