Fane Valley Co-operative has struck a deal with Donegal Investment Group plc to acquire Irish compounder Robert Smyth & Sons Limited.

The acquisition with the firm, which trades as Smyths Daleside Animal Feeds, will incorporate Smyth’s subsidiary companies, including Burke Shipping Services Ltd.

The deal will be subject to approval from the Competition and Consumer Protection Commission.

Founded in 1865, Smyths Daleside Feeds is a leading provider of animal feed products and nutrition, located in Ballindrait, Co.Donegal. Strategically located near the port in Lisahally, Smyths supplies a broad range of ruminant and monogastric feeds to a diverse customer base across the north and west of the island.

Fane Valley Group chief executive Trevor Lockhart said: “We are delighted to be acquiring Smyths Daleside Animal Feeds. It has built a strong brand and reputation for premium feed products, flexible and innovative feed solutions and excellent customer service.

The company will continue to trade under the Smyths Daleside name and day-to-day operational responsibility will remain with local management and staff.

"Customers can, therefore, be assured of a ‘business as usual’ approach in their dealings with the company going forward."

Lockhart continued: "The acquisition is a ‘natural fit’ for Fane Valley and presents an opportunity for the Co-op to further extend its catchment area for the supply of animal feed products and nutritional services.

"It will complement the co-op’s £18 million investment in a new feed mill in Omagh, Co.Tyrone in 2010 and demonstrates Fane Valley’s commitment to the future of livestock production in this region.

"The board of Fane Valley acknowledges the support of Ulster Bank for the acquisition and their on-going assistance to the Group.”