Greencore has entered the US market for the first time after it announced the acquisition of Home Made Brand Foods for $44m.
Home Made Brand Foods, based in Massachusetts, manufactures and supplies a range of fresh food products, including freshly prepared meals and salads, sandwiches and quiche. It expects to generate over $40m in revenues.
The deal is costing an initial $44m, while a further $10m will be payable depending on the company's performance this year. Greencore says it expects the deal to be 'modestly EPS accretive' from 2009.
Greencore said it will relocate 'key personnel' to the US to develop its business there. Fergal Leamy, currently development director of the convenience foods division, has been appointed CEO of Greencore USA.
'This is an excellent strategic deal for Greencore,' commented CEO Patrick Coveney.
'We have spent the last two years on the ground and are excited by both the significant recent increase in the level of retailer investment in chilled food categories and by the positive consumer response to these initiatives,' he added.
Earlier this week Bakkavor, the Icelandic maker of fresh prepared foods for Tesco, said it had built up a 10.9% stake in Greencore.
Greencore shares closed unchanged at €3.79 in Dublin.
