Single Serve Solutions
Fratelli Beretta - Over 200 Years of Bringing Families Together - For Passion - For Quality
Greencore to Sell U.S. Food Unit for $1 Billion

Greencore to Sell U.S. Food Unit for $1 Billion


DOWNERS GROVE, IL
Tuesday, October 16th, 2018

Hearthside Food Solutions announced the signing of a definitive agreement to acquire Greencore USA for just over $1 billion. The Greencore USA acquisition expands and diversifies the Hearthside network to 38 production facilities in the U.S. and Europe.

Rich Scalise, Chairman and CEO, Hearthside“Consumer choice is driving growth in frozen, refrigerated, and fresh sandwiches/entrees, where Greencore USA is a recognized leader. Leading brands are expanding into these categories and are seeking additional value chain services. The acquisition of Greencore USA will expand our production, innovation, and R&D capabilities across these categories,” said Rich Scalise, Hearthside Chairman and CEO.

The Greencore USA acquisition expands and diversifies the Hearthside network to 38 production facilities in the U.S. and Europe

According to a press release, this transaction is a significant step in the further growth and development of Hearthside’s network. Hearthside was acquired in May 2018 by Charlesbank Capital Partners and Partners Group on behalf of their clients. Greencore USA—prior to being purchased by Greencore Group PLC—was known as Peacock Foods and was owned by Charlesbank from 2010-2016. The equity for this transaction, the press release noted, will be provided by Charlesbank and Partners Group, each of which has reserved significant incremental capacity to continue to invest organically and through acquisition in the Hearthside platform.

Chris Russell, Managing Director, Partners Group“The synergies and complementary strengths of Hearthside and Greencore USA are impressive,” said Chris Russell, Managing Director, Partners Group. “Both serve the world’s premier food companies, and both are known for and committed to lean, world-class manufacturing, setting high standards for quality, safety, and speed-to-market. Both companies are also committed to innovation and exemplary customer service, possessing complementary category expertise and capabilities. The combination of the two companies will generate exciting new product and service opportunities for their customers.”

Greencore USA is the U.S. unit of Greencore Group, an Ireland-based public company. Greencore USA operates 13 locations across North America, with 3,500 employees, and 2017 revenues of $1.4 billion.

Ryan Carroll, Managing Director, Charlesbank“The Greencore USA acquisition will expand Hearthside’s position in high-growth categories and broaden capabilities for existing and new customers, while further scaling operations. We are excited about the considerable synergies in culture, fundamental strategy, and operating principles,” said Ryan Carroll, Managing Director at Charlesbank. “These companies share a commitment to making excellent products and building deep, long-term relationships with the world’s leading brands, as evident in their investments in world-class manufacturing, quality, safety, innovation and, most importantly, people. We are thrilled to work with the Greencore USA team again and to welcome them to the Hearthside family.”

HSBC and Barclays served as financial advisors to Hearthside on this transaction. Ropes & Gray LLP served as legal advisor to Hearthside, Charlesbank, and Partners Group.

For the latest in specialty food happenings, keep reading Deli Market News.

Greencore USAHearthside Food Solutions
Topics:


Single Serve SolutionsFratelli Beretta - Over 200 Years of Bringing Families Together - For Passion - For Quality

Have a new product, press release or story idea?

Let us know

In This Story


Greencore Group plc is a leading international manufacturer of convenience foods. We are proud to supply a wide range of chilled, frozen and ambient foods to some of the most successful retail and...

Hearthside Food Solutions is the industry’s leading food contract manufacturer, and leader in nutritional bars and baked snacks. Our product categories include energy bars, snack bars, granola bars...