Irish retailer Avoca to be sold for 60 million euros

Irish luxury goods retailer Avoca is to be sold to US multinational caterer Aramark for 60 million euros, subject to the approval of Ireland’s Competition and Consumer Protection Commission.

Avoca, which is known for its luxury fashion as well as its chain of cafes, has 11 outlets across Ireland and employs more than 850 staff, and the deal with Aramark could see it set for major expansion across Ireland and the UK.

Currently Avoca outlets are clustered around Dublin and Wicklow, as well as being in Kerry, Belfast and Connemara, and Aramark has suggested they wish to add five or six new cafe and retail stores to its existing network with Cork, Galway, Limerick and Waterford mentioned as potential locations.

Following Irish expansion, Aramark has hinted that they may take the retailer to the London area, targeting at least three large destination-style outlets that are accessible from major routes such as the M25 London ring road. Then depending on performance the Irish retailer could then be launched in America, where Aramark is headquartered.

Commenting on the deal, Donal O’Brien, president of Aramark’s Irish operations, said: “This is an important, strategic investment for Aramark to add innovative new platforms to serve consumers and distinguish our business.

“A retailer like Avoca will provide us with consumer insights that will enable us to identify future trends and ensure our clients are ahead of the curve in meeting their customers’ needs.”

Aramark to buy Irish retailer Avoca

Avoca will be run as a separate business unit within Aramark’s Irish operations and the Pratt family, which founded and currently run the store, will remain involved with the company. Simon Pratt, current managing director Avoca will remain in his current position and will join the senior management team for Aramark’s operations in Ireland. While founders Donald and Hilary Pratt will also remain in the business as will current directors Ivan Pratt and Vanessa Pratt.

Simon Pratt, managing director of Avoca, added: “In Aramark we have found a global partner which recognises the uniqueness of the Avoca brand and is committed to maintaining the heritage of our company. As a family, we are very excited at this latest development for Avoca and believe it is the right decision for us as a business and a family, at the right time and with the right partner.

“Aramark provides us with the corporate structures, the global reach and the resources to reach our fullest potential and to continue to grow both in Ireland and internationally. Avoca has been in existence for nearly 300 years and with this acquisition we are securing its future and that of our 850 employees.”

Images: Avoca