Sector News

Greencore sells U.S. business for $1 billion

October 15, 2018
Food & Drink

Greencore Group, Britain’s biggest sandwich maker, on Monday said it had sold its U.S. business for just over $1 billion, two years after it made a major acquisition in a bid to transform its U.S. operations.

Greencore’s U.S. business produces sandwiches, salads, sushi and deserts for customers including Starbucks and the 7-Eleven convenience store.

In 2016 it purchased Illinois-based Peacock, which produces frozen breakfast sandwiches, snack kits for children and salad packs, among other items, for $747.5 million.

Greencore said in a statement it had agreed to sell its U.S. business to Hearthside Food Solutions for $1.075 billion.

It said it would distribute 509 million pounds ($668 million) in cash to shareholders and shift its full focus to developing its British business.

“We have always had a firm conviction on the underlying value and growth prospects of our U.S. business and believe that this offer fully reflects that,” Chief Executive Patrick Coveney said.

“The proposed transaction would enhance our strategic and financial flexibility, which would allow us to build on our industry-leading position in our core UK market whilst also taking advantage of emerging organic and inorganic growth opportunities,” he said.

Greencore said it hoped the deal would be completed by late November and said it would have an extraordinary general meeting to vote on it on Nov. 7.

By Conor Humphries

Source: Reuters

comments closed

Related News

September 25, 2022

Coca-Cola names new president of global ventures

Food & Drink

The Coca-Cola Co. has promoted Evguenia (Jeny) Stoichkova to president of global ventures, effective Jan. 1, 2023. Ms. Stoichkova joined Coca-Cola Bulgaria in 2004 and was most recently the president of the company’s Eurasia & Middle East division, a role she has held since 2021.

September 25, 2022

Perfect Day allies with Onego Bio to speed-up launch of animal-free eggs

Food & Drink

US-based Perfect Day, is partnering with Onego Bio, which specializes in creating animal-free eggs, aiming to accelerate the timeline to bring the eggs to the market. The business, with the use of its technology, plans to commercialize animal-free ovalbumin, the most abundant egg white protein extracted through precision fermentation.

September 25, 2022

EU fails on food waste: Report reveals bloc discards more than it imports

Food & Drink

Food waste costs the EU €143 billion per year (US$141.7 billion), with a report by Feedback EU raising the alarm of how it’s vital to reduce waste from farm to fork 50% by 2030 and the only way this will be achieved is by enforcing a mandatory directive forcing the food industry to do better and retailers to pay a tax of food waste.