UK-listed Greencore has announced a $750m (€690m) deal for US frozen breakfast sandwich maker Peacock Foods
Peacock, a US convenience food manufacturer specialising in frozen breakfast sandwiches has revenues of approximately $1bn (€930m) with profits (EBITDA) of $72.1m (€67m). This values the deal at around 10 times earnings.
The deal is to be funded by a rights issue to raise a total of £439.4m and new debt facilities of approximately £200m. The rights issue will comprise nine new Greencore shares issued at 153 pence per share for every 13 existing Greencore shares.
“The acquisition of Peacock will transform our US business, strengthen our position in high growth categories, broaden our channel and customer exposure, and add significant scale to our operations,” said Greencore chief executive Patrick Coveney.
Peacock is focused on fast-growing categories such as frozen breakfast sandwiches, kids’ snack kits and salad kits. It has strong relationships with multinational food companies including Tyson Foods, KraftHeinz and Dole.
Step change
This deal provides operating scale in the US and represents a step change in terms of scale in overall revenues, especially in the US. It adds seven sites creating a manufacturing footprint five times the footprint of Greencore’s current US operations.
Greencore is the world’s largest sandwich maker with annual turnover of £1.5bn. It also reported an 11% increase in full-year revenues despite a “challenging and uncertain retail and economic environment in the UK”.
For the year ended 30 September, group revenue increased 10.6% to £1,481.9m (€1.7bn), up 5.9% on a like-for-like basis. Group profits (EBITDA) increased 13.9% to £138.4m, with operating profit up 11.2% to £102m.
Net debt increased some £66m to £331.8m, mainly driven by an increase in capital expenditure and the acquisition of The Sandwich Factory. However, it was also impacted by the depreciation in the value of sterling since the EU referendum.
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Greencore buys The Sandwich Factory for £15m
UK-listed Greencore has announced a $750m (€690m) deal for US frozen breakfast sandwich maker Peacock Foods
Peacock, a US convenience food manufacturer specialising in frozen breakfast sandwiches has revenues of approximately $1bn (€930m) with profits (EBITDA) of $72.1m (€67m). This values the deal at around 10 times earnings.
The deal is to be funded by a rights issue to raise a total of £439.4m and new debt facilities of approximately £200m. The rights issue will comprise nine new Greencore shares issued at 153 pence per share for every 13 existing Greencore shares.
“The acquisition of Peacock will transform our US business, strengthen our position in high growth categories, broaden our channel and customer exposure, and add significant scale to our operations,” said Greencore chief executive Patrick Coveney.
Peacock is focused on fast-growing categories such as frozen breakfast sandwiches, kids’ snack kits and salad kits. It has strong relationships with multinational food companies including Tyson Foods, KraftHeinz and Dole.
Step change
This deal provides operating scale in the US and represents a step change in terms of scale in overall revenues, especially in the US. It adds seven sites creating a manufacturing footprint five times the footprint of Greencore’s current US operations.
Greencore is the world’s largest sandwich maker with annual turnover of £1.5bn. It also reported an 11% increase in full-year revenues despite a “challenging and uncertain retail and economic environment in the UK”.
For the year ended 30 September, group revenue increased 10.6% to £1,481.9m (€1.7bn), up 5.9% on a like-for-like basis. Group profits (EBITDA) increased 13.9% to £138.4m, with operating profit up 11.2% to £102m.
Net debt increased some £66m to £331.8m, mainly driven by an increase in capital expenditure and the acquisition of The Sandwich Factory. However, it was also impacted by the depreciation in the value of sterling since the EU referendum.
Read more
Greencore buys The Sandwich Factory for £15m
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