Greencore snaps up US foods business in massive €690m deal
Irish convenience food firm Greencore is to acquire US-based Peacock Foods in a massive $747.5m (€690m) deal
Peacock is strongly positioned in the frozen breakfast sandwiches, kids' chilled meal kits and salad kits markets in America and generates around $1bn in revenue.
The deal, which is funded by a mix of a rights issue and new debt facilities of around €232m will improve Greencore's market and channel position in the US.
Greencore chief executive Patrick Coveney said the deal would "transform" the company's US business.
"We believe Peacock’s success is built on the same fundamental strategy and values that drive Greencore, making products that consumers love, building deep, longstanding relationships with customers, investing in high quality manufacturing capacity, food safety capability and, most importantly, people," he said.
Greencore's new US division, which will include Peacock after completion of the deal will be headed up by Chris Kirke.
Peacock CEO Tom Sampson will be appointed as a senior advisor to the business to help with customer transition over the next two years.
Mr Sampson said the company was "thrilled" to be joining Greencore.
"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.”