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Irish foods manufacturer Greencore to sell its entire US business

Convenience foods manufacturer Greencore has announced it is to sell its entire US business. Gree...
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Newstalk

09.32 15 Oct 2018


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Irish foods manufacturer Green...

Irish foods manufacturer Greencore to sell its entire US business

Newstalk
Newstalk

09.32 15 Oct 2018


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Convenience foods manufacturer Greencore has announced it is to sell its entire US business.

Greencore US is being bought by an affiliate of Hearthside Food Solutions for US$1,075m (€929m).

This is set to be on a cash and debt-free basis, on conditional approval of Greencore shareholders and US HSR clearance.

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Greencore says net proceeds of around stg£802m (€909m) will allow for a special dividend of 72 pence per ordinary share to shareholders 'as soon as practicable'.

This represents a combined total of of stg£509m (€577m) in cash.

After the transaction, Greencore says it will have "a leading position in its core UK market, greater financial and strategic flexibility, and potential for dynamic capital management".

The sale is expected to be completed by late November.

Image: Greencore

Commenting on the sale, Greencore CEO Patrick Coveney says: "We believe that the proposed sale of our US operation represents a compelling and immediate realisation of value for Greencore's shareholders.

"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.

"Looking ahead, we are confident that we can deliver further growth and returns in the dynamic UK market.

"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."

Greencore produces chilled and frozen food-to-go products for convenience retail and food service leaders in the US.

It is also a manufacturer of consumer packaged goods for many of the largest food brands.

In the UK, Greencore has strong market positions across sandwiches and other food-to-go products - including chilled prepared meals, chilled soups and sauces, cakes, desserts and Yorkshire Puddings.

It is also a supplier of own-label products to all of the major British supermarkets.


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