Thursday 19 September 2019

Greencore completes sale of US business

Patrick Coveney, Greencore CEO
Patrick Coveney, Greencore CEO
Independent.ie Business Desk

Independent.ie Business Desk

Greencore has completed the sale of its entire US operation for $1.07bn (€943m) to Hearthside.

The company has ditched its US arm just two years after forking out $749m (€647m) to buy Illinois-based business Peacock Foods in what was a transformational deal for the Irish firm.

It added about $1bn a year in sales for Greencore and quadrupled its US revenues.

Greencore will now focus solely on the UK and Ireland.

The United States, where Greencore has customers such as Starbucks and 7-Eleven, has been challenging for the company, which has 13 production facilities there and employs about 2,800 people.

Earlier this year, a shock profit warning saw Greencore's shares plunge by a third, and it flagged issues at its US business.

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