15th Oct 2018 08:11
LONDON (Alliance News) - Greencore Group PLC on Monday said it agreed to sell its entire US business to an affiliate of Hearthside Food Solutions LLC for USD1.08 billion is cash.
The bulk of Greencore's US unit was previously known as Peacock Foods and was owned by investment firm Charlesbank until purchased by Greencore in November 2016.
The food company said it intends to use proceeds from the sale to pay its shareholders a special dividend of 72 pence per share, representing GBP509 million in cash. The remaining proceeds of GBP293 million will be used to reduce leverage and support the company's balance sheet, it said.
Greencore believes that after transaction it will have a leading position in its core UK market, greater financial and strategic flexibility, and potential for dynamic capital management.
The company expects the disposal to complete by late November, subject to shareholder approval and US HSR clearance.
"We believe that the proposed sale of our US operation represents a compelling and immediate realisation of value for Greencore's shareholders," explained Chief Executive Patrick Coveney.
"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," added Convey.
The company said it intends to publish its annual results on December 4.
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