Convenience foods group Greencore has today completed a deal to buy Freshtime UK Limited, a supplier of food to go salads, chilled snacks and prepared produce, for an enterprise value of £56m.

Freshtime's products are distributed mainly in the UK grocery and convenience channels and the business operates from a single plant Lincolnshire. 

The company generated revenues of £66m and profit before tax of £5.6m last year, while its gross assets stood at £22m.

Greencore said that Freshtime will extend its presence in food to go salads and chilled snacking and its strong customer base is highly complementary to the company's existing portfolio. 

Greencore said the deal is being funded from existing debt facilities and the transaction is expected to be neutral to earnings in 2019 and modestly accretive in 2020. 

Patrick Coveney, CEO of Greencore, said that Freshtime is an excellent strategic fit for the Irish headquartered, London listed company.

"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," the CEO added.