CONNACHT GOLD CO-OP HAS ACQUIRED THE MILK AND RETAIL STORE BUSINESSES OF DONEGAL CREAMERIES PLC.  THE ACQUISITION INVOLVES THE DONEGAL CREAMERIES 120M LITRES MILK POOL, THE LIQUID MILK PROCESSING FACILITY AT KILLYGORDON AND 11 RETAIL STORES - NINE IN DONEGAL AND TWO IN NORTHERN IRELAND.

 THE ACQUIRED BUSINESSES HAD A TURNOVER OF 69 MILLION EURO FOR THE YEAR ENDED 31 DECEMBER 2010. THE ACQUISITION WILL BE FUNDED FROM CONNACHT GOLD'S OWN RESOURCES AND BANK FACILITIES.

CO-OP CHAIRMAN, PADRAIG GIBBONS SAID THE DEAL IS OF MAJOR STRATEGIC IMPORTANCE. CONNACHT GOLD WILL NOW HAVE A TOTAL MILK POOL OF 370M LITRES AND WILL BE THE LEADING SPECIALIST PRODUCER IN THE IRISH MARKET.  THE ACQUISITION ALSO INCREASES THE NUMBER OF CONNACHT GOLD RETAIL AND AGRI-BUSINESS STORES TO 41 ACROSS EIGHT COUNTIES IN THE REPUBLIC AS WELL AS FERMANAGH AND TYRONE IN NORTHERN IRELAND.