Drogheda-based biscuit company East Coast Bakehouse has been acquired by Danish group Bisca for €13 million.
Restructuring expert Kieran Wallace of Interpath was appointed by Judge Michael Quinn in January to act as examiner over the business, which was co-founded and run by former Enterprise Ireland chair Michael Carey.
The biscuit company employs 78 people at a manufacturing facility in Drogheda, Co Louth, and its operations have continued as normal during the 100-day examinership process. It said the deal secured all jobs at the group.
Bisca, a leading Danish biscuit manufacturer, said it agreed to “acquire and invest” in East Coast Bakehouse, providing funding for a High Court-approved “scheme of arrangement”, refinancing the company’s secured debt and supporting its ongoing working capital requirements.
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The investment has been agreed by the company’s former shareholders, key creditor groups, and approved by the High Court.
Carey, who will no longer be involved with the company following the deal, said the outcome “secures the future of the business in Drogheda and the 78 jobs at the facility”.
“East Coast Bakehouse has witnessed good growth in the past few years,” he said. “Building on that platform, Bisca now brings the scale, experience and strategic fit needed to support the next phase of the company’s development.
“This investment reflects confidence in the strength of the business and its future potential.”
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The High Court previously heard East Coast Bakehouse had reached a phased payment arrangement with Revenue relating to tax debts of about €2 million.
The firm has faced financial cash pressure arising from high ingredient cost inflation, general increases in cost of doing business and phased repayment arrangements of tax liabilities, it said in a recent statement.
It is understood that the company suffered losses during its start-up period as it looked to develop large-scale manufacturing capabilities. During this period, it was hit by impacts from Brexit and the Covid-19 pandemic, which disrupted its growth at critical periods.
