Acquisition
Greencore Group PLC
30 April 2008
GREENCORE GROUP ENTERS THE US CHILLED PREPARED FOODS MARKET
PLATFORM ACQUISITION ON THE EAST COAST
GREENCORE GROUP PLC ('Greencore' or the 'Group'), one of Europe's leading
convenience food and malt producers, today announces the acquisition of Home
Made Brand Foods Inc. ('HMBF'), a leading manufacturer in the chilled food
market in the North East region of the United States. This acquisition marks
the entry by Greencore into the growing chilled convenience food market in North
America.
Based in Newburyport, Massachusetts, HMBF is a regional leader in fresh prepared
food. It manufactures and supplies a range of fresh food products, including
fresh prepared meals and salads, sandwiches and quiche to a customer base that
includes leading regional retailers such as Stop & Shop, Hannaford and Publix.
In the current year, HMBF expects to generate in excess of USD40 million in
revenues and has potential manufacturing capacity to increase this to USD100
million within its existing facility. HMBF's experienced management team, led
by Rick Walters, will remain in place post the acquisition.
The initial consideration payable by the Group is USD44 million. Further
consideration will be payable up to a maximum of USD10 million, dependent on
HMBF's performance in the financial year to 31 December 2008. The acquisition
is expected to be modestly EPS accretive from FY09.
Over the past two years, Greencore has undertaken a detailed business
development effort in the US chilled food market. The Group has deepened its
knowledge of the market and established strong relationships with key regional
and national retailers in the US, as well as with potential brand licensors.
These relationships, taken together with Greencore's distinctive operational
capability in chilled prepared food, will enable the Group to accelerate the
existing growth plans of HMBF to deliver a scale US business.
Greencore will relocate key personnel to the US to develop the Group's US
business. Fergal Leamy, currently development director of the Convenience Foods
division, has been appointed CEO of Greencore USA and he will be joined in the
US by other leaders in the areas of chilled food manufacturing, supply chain and
product development.
COMMENTING ON THE US OPPORTUNITY, PATRICK COVENEY, GREENCORE'S CHIEF EXECUTIVE
SAID:
'This is an excellent strategic deal for Greencore. What we are about here is
marrying our proven operational capabilities in convenience food, developed over
20 years in the UK market, with the emerging US consumer and retailer demand for
high quality, chilled prepared food. We have spent the last two years on the
ground and are excited by both the significant recent increase in the level of
retailer investment in chilled food categories and by the positive consumer
response to these initiatives. HMBF represents a strong platform acquisition
for us - a profitable, well-run, regional leader with significant headroom for
further growth. Rick Walters and his team are widely respected across the
industry and we are delighted that they are coming on board to help deliver our
US strategy.'
FOR FURTHER INFORMATION, PLEASE CONTACT:
Eoin Tonge, Group Capital Markets Director +353 (0)1 605 1036
John Dudzinsky/Michael Henson, Taylor Rafferty Associates +1 212 889 4350
Billy Murphy/Anne-Marie Curran, Drury Communications +353 (0)1 260 5000
Rory Godson/Marie Cairney/Elizabeth Rous, Powerscourt +44 (0)20 7250 1446
NOTES TO EDITORS
ABOUT GREENCORE
Greencore Group plc is a leading international manufacturer of convenience food
and malt. It has sites in four countries of the European Union, employing some
8,000 people. Its foods are supplied to major retail, manufacturing and
foodservice customers in the UK & Ireland, as well as many in Continental
Europe. See www.greencore.com.
ABOUT HOME MADE BRAND FOODS
Home Made Brand Foods (HMBF) is a United States Department of Agriculture (USDA)
approved upscale prepared food manufacturer located in Newburyport,
Massachusetts. HMBF produces over 250 different products, packages 25 private
labels, and develops and manufactures numerous special recipe products for the
retail, food service and institutional trades. The company was previously owned
by PNC Equity Partners LP, Mr Richard Walters, Mr John Palmieri and certain
members of management.
This information is provided by RNS
The company news service from the London Stock Exchange
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