The Ireland Strategic Investment Fund is backing a deal to buy the Green Isle and Donegal Catch food manufacturing and export businesses by a group led by the former CEO of Largo Foods, Maurice Hickey.
The business is being bought from the 2 Sisters Food Group, one of the largest food manufacturing businesses in the UK.
The acquisition will support over 100 jobs at the manufacturing plant in Gurteen, Co Sligo and offices in Naas, Co Kildare.
The combined businesses will operate under the Green Isle Foods banner and will seek to grow and develop the Green Isle and Donegal Catch brands.
ISIF is the single biggest investor in the deal while other investors include Mr Hickey, Ray Coyle – a former founder of Largo Foods – and a number of other private investors.
The transaction was supported with bank debt provided by Ulster Bank.
The investor group said it believes there is a significant opportunity to grow this leading indigenous, Irish food manufacturing business into the future, in both the frozen food and other growth segments of the food market.
"This is an example of ISIF’s commitment to investing in regional businesses, a key feature of our refocused investment strategy," commented ISIF's Senior Investment Director for Food and Agriculture, Cathal Fitzgerald.
"We are pleased to support a business that generates significant economic activity and employment in Sligo and Kildare and we look forward to helping Green Isle grow its export base and target new European markets," he added.