Greencore Group has this weekend completed the sale of its entire US operation to an affiliate of Hearthside Food Solutions.
The US operation, which was bolstered two years ago with the £600m acquisition of Peacock Foods, had proved challenging for Greencore and has impacted profits across the group.
Announcing the $1bn (£817m) sale to contract food manufacturer Hearthside last month, Greencore CEO Patrick Coveney said he was confident Greencore could deliver further growth and returns in the UK market.
“The proposed transaction would enhance our strategic and financial flexibility, which would allow us to build on our industry-leading position in our core UK market whilst also taking advantage of emerging organic and inorganic growth opportunities,” he stated at the time.
Greencore said the deal will enable it to:
- Extend its position in the growing convenience food market
- Deepen its long-term partnerships with customers
- Execute value-creating initiatives
- Focus the organisation on UK opportunities with a strong team of leaders
- Drive sustained growth, returns and cash flow for shareholders.
Greencore recently exited the UK desserts sector with the sale of its cakes and desserts business in Hull to Bright Blue Foods and closure of its desserts facility in Evercreech, Somerset.