Greencore gobbles up UK's Sandwich Factory
Irish food firm Greencore is the latest company to snap up a UK business since the Brexit decision. Greencore has bought The Sandwich Factory in a £15m deal as it looks to extend its presence in the high-growth food-to-go category.
The Sandwich Factory, which operates from a single facility in Warwickshire, brought in £42m in revenue last year.
Greencore chief executive Patrick Coveney said the deal makes "strong strategic sense" for the business.
"The Sandwich Factory will extend our reach into customer channels in which we are currently under-represented, notably convenience stores and the travel sector, and will also bring new product types into the Greencore portfolio," he added.
"We are delighted to be adding more capacity to our manufacturing network, and to be welcoming new colleagues to our business."
Liam Igoe, a food and drink analyst at Goodbody Stockbrokers, said: "This acquisition makes strategic sense for Greencore as it not only increases the group's overall capacity across its UK food-to-go network but also extends its reach in channels that it is currently under-represented."
He said a trading update from Greencore was expected to report like-for-like sales growth of 6.8% and 11.7% for the UK and US divisions respectively.
The Sandwich Factory had been part of Cranswick plc. Northern Ireland meat giant Dunbia was last year tipped to sell its pork division to Cranswick or Danish Crown.