Kildare-based bloodstock sales group RJ Goff has acquired Doncaster Bloodstock Sales (DBS), a move that significantly boosts its share of thoroughbred horse sales in the UK and Ireland.
It is understood payment has been made by way of shares, with DBS given a 9 per cent stake in Goffs. This shareholding is believed to be valued at €4.5 million.
The deal will dilute the existing 500 Goffs shareholders. The largest backer is the Aga Khan, who owns 30 per cent of the business.
As part of the deal, Henry Beeby, managing director of DBS and a large shareholder in that company, will move to Ireland to become Goffs group chief executive. Oliver O'Reilly retires from that role today but will continue as chairman of Goffs.
Eimear Mulhern, daughter of deceased former taoiseach Charles Haughey, has become executive vice-chairman of the enlarged group.
The combined entity will hold 22 sales annually in Britain and Ireland, cataloguing more than 10,000 horses. It is expected to have annual turnover of €200 million.
It will hold a 31 per cent share of its market, roughly half that of Tattersalls, which dominates bloodstock sales in Ireland and the UK.
Goffs has increased its profitability significantly in recent years. For the year to March 2007, the firm is expected to post a profit of about €3.5 million on turnover of around €137 million.
This compares with a profit of €2.5 million on turnover of about €100 million in the previous 12 months. Goffs also owns 30 per cent of Arqana, a leading sales company in France.
DBS, which has turnover of about €55 million, will retain its brand name for now.
Situated close to Doncaster racecourse in the north of England, DBS is building a new sales complex expected to open in January. This will have 508 stables, a custom-built sales arena, a restaurant, a bar, agents' offices and veterinary facilities.
Goffs has a 21 per cent share of bloodstock sales in the UK and Ireland, while DBS accounts for 10 per cent of the market.
Tattersalls, meanwhile, is estimated to have a 68 per cent share.
"With operations in three countries, we're now serious contenders in the bloodstock market across the world," Mr O'Reilly said.
"It's a very good combination. The Goffs name is very well-known in the industry and Doncaster has ambitious plans for its company.
"Together, we're confident of growing our businesses significantly over the next few years."
Goffs famously sold Red Rum in 1966 as a yearling for 406 guineas. The horse went on to win three Grand Nationals at Aintree and became a household name.
The group sells thoroughbred flat and national hunt horses.
Goffs occupies a 125-acre site in Kill, Co Kildare. The land is zoned for equine and leisure development and Mr O'Reilly said Goffs plans to look at how it can "maximise" the use of the site "in terms of value".
