Mayfair Equity Partners, a UK investment company, is to invest £60.8m (€67.3m) in Promise Gluten Free, a bakery business based in Co Donegal.
Documents lodged in the Companies Registration Office last week show that the company has also agreed funding deals with two Irish banks for up to €35m.
It has been reported that Mayfair is to take a majority stake in the bread company, founded by Declan Gallagher.
As part of an extensive finance package, the company has negotiated loan facilities of €15m from AIB and Ulster Bank. The lenders have also agreed to advance a further uncommitted facility of up to €20m.
Part of the Mayfair investment will be used to buy its majority stake in the business. The huge capital injection into the business will be used to fund its expansion.
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Founder Gallagher said last month that the fresh fund would be used to increase capacity in new and existing markets and expand its existing facilities.
Promise Gluten Free produces a range of breads and confectionary for coeliacs. It ships bread to 1,000 outlets in Australia and 10,000 outlets in North America. It is also listed with Tesco, Sainsbury and Marks & Spencer in the UK, and Dunnes and Supervalu in this market.
The Gallagher family sold a majority stake in its Ardara bakery business to IAWS, since renamed Aryzta, in 2007. Four years later, the quoted company announced that it was to close the bakery and move production to Dublin. Gallagher rescued the business and the jobs.
While continuing to produce fresh bread, Gallagher decided to move into the production of gluten-free bread, and the company’s products have collected awards in a number of countries.
Mayfair Equity Partners was launched two years ago by three partners who quit Lloyds’ private equity arm, LDC.