Wed, 24 Jul 2019

Ireland's Greencore to sell U.S. operations to Hearthside

By Sheetal Sukhija, Connecticut State News
15 Oct 2018, 23:56 GMT+10

DUBLIN, Ireland - An affiliate of Hearthside Food Solutions is acquiring the entire U.S. business of Irish based food group Greencore in a deal worth $1.075 billion.

Greencore's U.S. business, which is engaged in the production of sandwiches, salads, sushi and deserts, boasts of customers like Starbucks and the 7-Eleven convenience store.

In a bid to transform its U.S. operations, two years back, Greencore made a major acquisition.

In a deal worth $747.5 million, in 2016, Greencore bought Illinois-based Peacock, which produces frozen breakfast sandwiches, snack kits for children and salad packs, among other items.

In its statement announcing the sale of its U.S. businesses, Greencore said the proceeds of the deal will be used to strengthen its balance sheet.

The company said that it intends to declare a special dividend of 72 pence per share. 

Greencore's U.S. business, will now be owned by the U.S. contract food manufacturer, Hearthside, which is one of the largest co-manufacturers and suppliers of snack products to large consumer packaged goods companies in the U.S. 

According to the Irish company's announcement, the deal will complete in late November 2018.

The deal is also conditional on approval from the company's shareholders and U.S. clearance.

Pointing out that the proposed sale of its U.S. operation represents a compelling and immediate realization of value for its shareholders, Greencore CEO Patrick Coveney said, "We have always had a firm conviction on the underlying value and growth prospects of our US business and believe that this offer fully reflects that."

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