Greencore Completes $1.075 Billion Sale of US Business
Greencore Group, the Irish and UK convenience food business, has completed the sale of its entire US business to Hearthside Food Solutions for US$1.075 billion (£817 million) on a cash and debt-free basis. Hearthside is a major US contract food manufacturer with a heritage in US food industry outsourcing. The disposal will leave Greencore focused on the UK convenience food market where it holds leadership positions.
Net proceeds of about £802 million will allow Greencore to declare a special dividend of 72 pence per ordinary share, representing an aggregate amount of £509 million in cash, to shareholders as soon as practicable following completion. The transaction will also support a strengthened balance sheet, with up to £293 million to be used to reduce leverage, and a target medium term leverage range of 1.5-2.0x Net Debt/EBITDA
