Greencore acquires Home Made Brand Foods for $54 million

Source: Food and Drink Digital

Date :30/04/2008 10:54:19

Greencore today announced its acquisition of Home Made Brand Foods Inc., a manufacturer in the chilled foods market based in Massachusetts, USA.

The acquisition marks the Irish food and property group’s first entry into the American chilled convenience market.

HMBF manufactures and supplies a range of fresh food products, including salads, sandwiches and quiche. It expects to generate over $40 million in revenue.

Investment

The deal is costing an initial $44 million, with a further $10 million payable depending on the company’s performance in the year to December 31, 2008. The acquisition is expected to be modestly EPS accretive from financial year 2009.

HMBF’s management team, led by Rick Walters, will remain in place post the acquisition. Greencore has 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.

Greencore shares were down this morning, four cents to €3.75 in Dublin.

April 30, 2008