Greencore acquires UK food firm in £56m deal
Irish firm Greencore has acquired Freshtime, a manufacturer of convenience foods in the UK, for £56m.
In the 12 months ended December 2018, Freshtime generated revenues of £66m and profit before tax of £5.6m.
Greencore, which is headed by Patrick Coveney, already distributes a large proportion of Freshtime's products through its direct-to-store network across the UK. The purchase will be funded from existing debt facilities, and Greencore expects to remain within its medium-term leverage range following the transaction.
Commenting on the deal, Mr Coveney said that it was "an excellent strategic fit" for the group.
Earlier this year Mr Coveney said Greencore, which manufactures about 706 million food-to-go items including sandwiches every year, would pursue expansion in the UK market organically but also via a significant number of small-scale acquisitions.
Analysts yesterday said they expect bolt-ons to become central to Greencore's capital allocation playbook.