30th Apr 2008 07:01
Greencore Group PLC30 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 leadingconvenience food and malt producers, today announces the acquisition of HomeMade Brand Foods Inc. ("HMBF"), a leading manufacturer in the chilled foodmarket in the North East region of the United States. This acquisition marksthe entry by Greencore into the growing chilled convenience food market in NorthAmerica. Based in Newburyport, Massachusetts, HMBF is a regional leader in fresh preparedfood. It manufactures and supplies a range of fresh food products, includingfresh prepared meals and salads, sandwiches and quiche to a customer base thatincludes leading regional retailers such as Stop & Shop, Hannaford and Publix.In the current year, HMBF expects to generate in excess of USD40 million inrevenues and has potential manufacturing capacity to increase this to USD100million within its existing facility. HMBF's experienced management team, ledby Rick Walters, will remain in place post the acquisition. The initial consideration payable by the Group is USD44 million. Furtherconsideration will be payable up to a maximum of USD10 million, dependent onHMBF's performance in the financial year to 31 December 2008. The acquisitionis expected to be modestly EPS accretive from FY09. Over the past two years, Greencore has undertaken a detailed businessdevelopment effort in the US chilled food market. The Group has deepened itsknowledge of the market and established strong relationships with key regionaland national retailers in the US, as well as with potential brand licensors.These relationships, taken together with Greencore's distinctive operationalcapability in chilled prepared food, will enable the Group to accelerate theexisting growth plans of HMBF to deliver a scale US business. Greencore will relocate key personnel to the US to develop the Group's USbusiness. Fergal Leamy, currently development director of the Convenience Foodsdivision, has been appointed CEO of Greencore USA and he will be joined in theUS by other leaders in the areas of chilled food manufacturing, supply chain andproduct development. COMMENTING ON THE US OPPORTUNITY, PATRICK COVENEY, GREENCORE'S CHIEF EXECUTIVESAID: "This is an excellent strategic deal for Greencore. What we are about here ismarrying our proven operational capabilities in convenience food, developed over20 years in the UK market, with the emerging US consumer and retailer demand forhigh quality, chilled prepared food. We have spent the last two years on theground and are excited by both the significant recent increase in the level ofretailer investment in chilled food categories and by the positive consumerresponse to these initiatives. HMBF represents a strong platform acquisitionfor us - a profitable, well-run, regional leader with significant headroom forfurther growth. Rick Walters and his team are widely respected across theindustry and we are delighted that they are coming on board to help deliver ourUS 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 foodand malt. It has sites in four countries of the European Union, employing some8,000 people. Its foods are supplied to major retail, manufacturing andfoodservice customers in the UK & Ireland, as well as many in ContinentalEurope. 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 privatelabels, and develops and manufactures numerous special recipe products for theretail, food service and institutional trades. The company was previously ownedby PNC Equity Partners LP, Mr Richard Walters, Mr John Palmieri and certainmembers of management. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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