Greencore Group has announced the proposed acquisition of US-based convenience food manufacturer Peacock Foods for $747.5 million.
Greencore would benefit from Illinois-based Peacock’s strong market positions in frozen breakfast sandwiches, children’s chilled meal kits and salad kits, it said. It generated revenue of around $1 billion in the year to September with adjusted pre-tax earnings of $72.1 million.
The combined business ‘has the potential to transform Greencore’s market and channel position in the US and create a strong platform for long-term profitable growth’, the Irish firm said.
The new US division, which, after completion, will include Peacock Foods, will be led by the CEO of Greencore’s US division, Chris Kirke. Thomas Sampson, Peacock’s CEO, will be appointed as a senior advisor to Greencore with particular responsibility for managing customer transition and integration over the next two years.
Greencore has projected ‘significantly enhanced’ earnings in the first full year following completion, due to strong earnings and the growth profile of Peacock, as well as the expected realisation of cost synergies.
Greencore CEO Patrick Coveney said: “The acquisition of Peacock will transform our US business, strengthen our position in high-growth categories, broaden our channel and customer exposure, and add significant scale to our operations. We believe Peacock’s success is built on the same fundamental strategy and values that drive Greencore, making products that consumers love, building deep, long-standing relationships with customers, investing in high-quality manufacturing capacity, food safety capability and, most importantly, people. We are delighted to welcome the Peacock team into the Greencore Group.”
And Peacock Foods CEO Tom Sampson added: “We are thrilled to be joining the Greencore team at this important time in our growth. We have been particularly struck by the similarities in the way we run our business and our mutual long-term commitment to the US convenience food market. We are excited by the opportunity that we now have to leverage Greencore’s expertise in innovation and fresh food manufacturing, thereby bringing a broader set of capabilities to our customers.”
Greencore is best known in Europe as a manufacturer of private-label sandwiches and convenience food products to major high-street retailers and supermarkets. It recently took over the contract for UK supermarket Sainsbury’s.
© FoodBev Media Ltd 2019