25th Feb 2014 13:20
LONDON (Alliance News) - Greencore Group PLC Tuesday announced a number of strategic investments in the US, including the acquisition of Lettieri's, a US manufacturer of food-to-go products.
The Ireland-based convenience foods manufacturer did not include any financial details on the deal, but said the acquisition will be funded from existing debt facilities, and it expects the business to modestly boost earnings in the current financial year.
Greencore also said that it is investing around USD10.0 million in its Jacksonville facility in Florida, so it can manufacture frozen food-to-go products. It said the investment will provide capacity to support up to USD100 million of revenue in products designed for hot eating at breakfast or lunchtime. The group is hoping the first of such products will come to market in the final quarter of this year.
"Both investments are consistent with our long-term approach of developing high quality manufacturing facilities to meet the specific growth strategies of our key US customers," said Chief Executive officer Patrick Coveney commenting on the investments.
Greencore shares were trading 0.1% lower at 237.70 pence per share Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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