Greencore spends €62m on UK acquisition
Greencore has acquired Freshtime, a manufacturer of convenience foods in the UK, for £56m (€61.7m).
In the 12 months ended December 2018, Freshtime generated revenues of £66m and profit before tax of £5.6m. Gross assets at 31 December 2018 were £22m.
Greencore, which is headed by Patrick Coveney, already distributes a large proportion of Freshtime's products through its Direct to Store network.
Freshtime’s products are distributed primarily in the UK’s grocery and convenience channels. The business operates from a single facility in Lincolnshire.
Greencore, which manufactures about 706 million food-to-go items including sandwiches every year, said the acquisition would extend its presence in food-to-go salads and chilled snacking market.
The purchase will be funded from existing debt facilities and Greencore expects to remain within its medium term leverage range following the acquisition.
Patrick Coveney, CEO of Greencore, said: "Freshtime is an excellent strategic fit for Greencore.”
“It is a business and a customer set that we know very well and it provides us with an exciting opportunity to enhance our product offering, add further capacity to our manufacturing network, and help drive growth and value for shareholders.”
Earlier this year Mr Coveney said that Greencore will pursue expansion in the UK market organically but also via a significant number of small-scale acquisitions.