Greencore acquires second US food company in 10 weeks
GREENCORE HAS announced its second US acquisition in less than 10 weeks.
The convenience-food manufacturer said yesterday it had acquired US fresh-food manufacturer Schau.
It acquired the business for $13 million (€10.4 million) plus deferred cash consideration of $4.3 million. An additional performance-related $2 million may also be payable.
The acquisition of the company, which has facilities in Chicago and in Jacksonville in Florida, will help to facilitate a separate US deal announced by the company yesterday, which will see Greencore supply approximately $50 million of food-to-go products to a new unnamed customer on the US east coast and in the midwest.
The delivery of this new business will be phased in between September this year and next March.
Schau is a three-generation-old Chicago-headquartered company that provides fresh-food products including sandwiches, sushi and meat to convenience-food and grocery retail stores.
The company had revenue of $32 million last year. It is a major suppler to 7-Eleven stores in the Chicago area, thereby adding scale to Greencore’s relationship with the retailer. Marketfare Foods, which Greencore acquired in April, also supplies to the US retail chain.
Greencore said the Schau acquisition would be funded from existing debt facilities and would have a minimal impact on the group’s leverage. “It is expected to be modestly earnings accretive from the first year of ownership.”
Integration and transaction expenses are estimated at $2.5 million and will be treated as an exceptional item.