The deal, subject to approval by the Competition and Consumer Protection Commission, is part of Musgrave’s wider strategy to establish a world-class food and beverage business with a particular focus on foodservice and wholesale, the company said.
The acquisition of Italicatessen will enable the SuperValu and Centra owner to meet growing consumer demand for 'authentic, high-quality fresh and ambient products' imported directly from their country of origin, it added.
Musgrave foodservice, wholesale and retail customers will have direct access to a wide range of artisan Italian food and wine products, including pasta, preserves, cheese, olive oil and fine wines.
'An Excellent Strategic Fit'
Commenting on the deal, Noel Keeley, chief executive of Musgrave, said, “The acquisition of Italicatessen is an excellent strategic fit for our business which enhances our market-leading foodservice and retail offer.
"Whether it’s Italian, French, Spanish or Mexican food, consumers now expect the quality and taste to match the experience they have when eating in these countries. Italicatessen brings that authenticity to customers looking for locally sourced Italian products."
Italicatessen will continue to operate as a standalone business with the existing management team and staff working within the broader Musgrave wholesale business, the Irish retailer said.
Keeley added, "We look forward to working with the Italicatessen team and customers who will benefit from the support of Musgrave in terms of supply chain infrastructure and access to an increased product range."
Wicklow-based Italicatessen employs approximately 75 people. It was founded in 2002 as a small family-run business and has since grown to service over 900 customers.
Over the past 20 years, the company has forged relationships with leading producers in Italy to source goods. It also distributes goods to the UK from Brentford, where it employs 12 people.
Christian Reolon, MD of Italicatessen, said, "This is a positive milestone and a great opportunity for our company. Musgrave is a family business and Ireland’s leading food retail, wholesale and foodservice company. Musgrave will open access to the largest wholesale and foodservice distribution network in Ireland.
"This will enable us to grow, while ensuring the long-term sustainability of our business. The acquisition happens at a great time for us given the momentum of the business."