Sector News

Greencore sells U.S. business for $1 billion

October 15, 2018
Consumer Packaged Goods

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

June 8, 2024

Nomad Foods names Ruben Baldew as next Finance Chief

Consumer Packaged Goods

Frozen food maker Nomad Foods has appointed Ruben Baldew as its new chief financial officer, effective 17 June 2024. Baldew will succeed Samy Zekhout, who has stepped down to explore other opportunities outside of Nomad Foods. Zekhout will remain with the company until 31 July to ensure a smooth transition of duties, the Birds Eye maker noted.

June 8, 2024

Danish Crown CEO Jais Valeur to step down

Consumer Packaged Goods

Danish Crown has accelerated the search process for a new chief executive following the announcement by current CEO Jais Valeur that he intends to step down from his role. Valeur, who joined the company as CEO in 2015, will remain in his position until a replacement is found “to ensure no momentum is lost during the recruitment process,” Danish Crown explained.

June 8, 2024

Heineken achieves milestone with first European regenerative barley harvest

Consumer Packaged Goods

Heineken has achieved a significant milestone with the completion of its first large-scale regenerative agriculture barley harvest in Europe. The initiative, developed through Heineken’s Transitions programme and in collaboration with French cooperative Vivescia and its malt subsidiary Malteurop, represents the company’s first foray into regenerative farming at scale.

How can we help you?

We're easy to reach