THE MANGAN brothers - Gabriel, Terence and Leo - are set to share in a near €45 million windfall after agreeing yesterday to sell their Ennis-based wholesale group to rival BWG.
The deal, which is subject to approval from the Competition Authority, will bolster BWG's position as the second-biggest food wholesaler in Ireland behind the Cork-based Musgrave group.
Founded in 1932 in Kilmihil, west Clare, Mangans has annual turnover of €195 million, 250 staff and supplies about 225 independent retailers.
It operates eight cash-and-carry outlets and controls the Mace franchise for the west of Ireland and the Vivo and Xpress Stop brands around the country.
Gabriel Mangan, chairman of Mangans Wholesale, said the family decided to sell because "we believe that now is the time to align the business so that it will have greater scale and resources".
Documents lodged with the Companies Office indicate that Gabriel (66) and Terence (59) own 40 per cent each of the business, while Leo (56) has a 20 per cent share of the company.
This suggests that Gabriel and Terence are in line to receive up to €18 million each, while Leo will net about €9 million. All three will leave the business on completion of the transaction.
It is understood that BWG has not acquired any properties as part of the deal and will lease any buildings used by the wholesaler.
Latest filings for Mangans show it achieved an after-tax profit of €4.9 million on turnover of €192.6 million in 2006. Its accumulated profits stood at €31 million at the end of December that year.
The documents show it earned sales of about €1 million from the UK and the US in 2006.
BWG has annual turnover of more than €1.2 billion and employs about 900 staff.
The group manages a network of more than 900 convenience stores in Ireland and the UK under the Mace, EuroSpar, Spar, and XL Stop & Shop brands. It also has 25 cash-and-carry branches.
BWG chief executive Leo Crawford said: "Mangans is an excellent business with a long and successful track record and represents a natural extension to BWG's Irish operation."
BWG was acquired in 2006 by Mr Crawford, director John Clohisy and finance chief John O'Donnell for €390 million in a deal backed by AIB.
