FDBusiness.com

US Private Equity Firm Eyes Greencore

 Breaking News
  • Ardgowan Unveils Plans For Inverclyde Distillery Ardgowan Distillery has revealed ambitious designs for its new £12 million distillery which is being built on the Ardgowan Estate near Inverkip, 30 miles west of Glasgow. The plans showcase the flagship building which has just secured revised planning consent from Inverclyde Council. The striking new design, by Michael Laird Architects, brings a number of improvements [...]...
  • HKScan Launches Exports of Finnish Poultry Products to Sweden HKScan, the Nordic food and meat group, has started exporting Finnish poultry products to Sweden. They will initially be sold through the largest retailer ICA’s outlets under the Karinäs®(Kariniemen®) brand. The launch gives Swedish consumers access to a new innovation: high welfare farm-born poultry that is hatched on the farm where it is raised. This new concept is [...]...
  • Almonds Retain Top Spot For Nut Introductions in Europe According to Innova Market Research’s latest Global New Product Introductions Report, almonds retain the number one spot for nut introductions in Europe. With a 47% share of global almond product introductions, the region leads globally for the eleventh year running. Europe as a whole saw a total of 5,017 new introductions with almonds – a [...]...
  • Arla Foods UK Launches New Standards Model to Bring Sustainable Change to Dairy Farming With ongoing volatility in the global milk markets, increasing consumer misunderstanding of the sector, polarised levels of support for UK dairy farmers and a new post-Brexit Agriculture Bill the challenges for dairy farmers are mounting. Farmer-owned co-operative Arla Foods has launched ‘Arla UK 360’ – a new standard in UK dairy farming. The Arla UK 360 [...]...
  • €172 Million to Promote EU Agri-food Products In and Outside the EU The European Commission will provide funding of €172.5 million from the EU agricultural budget to promote EU agri-food products in Europe and across the world. 79 campaigns, covering a wide range of products such as dairy products, olives and olive oil, and fruit and vegetables, will be rolled out over the next three years. Agriculture and [...]...

US Private Equity Firm Eyes Greencore

US Private Equity Firm Eyes Greencore
November 07
10:33 2011

US private equity firm Clayton Dubilier & Rice is reported to have made an approach to buy Greencore, one of the leading convenience food processors in the UK. CD&R specialises in investing in market-leading companies that are typically underperforming. It has shown a preference for distribution- or services-related businesses. Rather than pursuing specific industry segments, the investment group concentrates on companies with broad ‘spread of risk’ characteristics, such as large customer and supplier bases and diverse revenue streams. According to Clayton Dubilier & Rice, it only invest where significant value can be created through operating performance improvements. CD&R has also successfully acquired stand-alone businesses in need of strategic repositioning.

 

CD&R has experience of owning large food businesses in both the UK and US. It acquired Brakes, the leading supplier to the food service markets in the UK and France in 2002. Before disposing of the business in 2007, CD&R helped Brakes to increase EBITDA by approximately 70% through a series of initiatives to improve margins, reduce costs, restructure operations and integrate acquisitions, all of which developed Brakes into one of Europe’s leading food service distributors. CD&R also owns US Foods, the second largest broadline food service distributor in the US, which was acquired in 2007.

 

Part of Greencore’s strategy is to develop its food service business in order to reduce its reliance on the multiple retail sector in the UK. Greencore has also been building a convenience food business in the US. Earlier this year, CD&R appointed Sir Terry Leahy, former chief executive of Tesco, as a senior adviser. Greencore is a key supplier to Tesco.

 

Greencore has still to realise the benefits of its recent £113 million acquisition of  Uniq, which will strengthen its standing in the food to go and chilled desserts sectors of the UK food market. Of course, Greencore had earlier in the year failed in its attempt to merge with UK convenience food group Northern Foods in an all share deal of equals to create Essenta Foods, a £1.7 billion turnover business. Boparan Holdings, controlled by Ranjit Singh Boparan, who is head of major British chicken processor 2 Sisters Food Group, spoiled Greencore’s plans with a successful £342 million cash bid for Northern Foods.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
  • October 31, 2018Int'l exhibition for food products and equipment (Indagra Food)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements