Greencore expands overseas empire via US deal
The firm, based in Brockton, south of Boston, Massachusetts, has gross assets worth $3.4m (as of September 30) and employs about 100 staff.
Group development director Eoin Tonge said: "On A Roll is a promising, growing business with a well-diversified customer base of major retailers and convenience stores.
“This acquisition will provide an additional revenue stream to Greencore USA's Food to Go category and will complement our existing businesses in Newburyport and Cincinnati."
Double-digit growth
Greencore USA, which was launched by Fergal Leamy in 2008 and is now run by Liam McClennon, operates from two sites, one in Newburyport, Massachusetts, which makes prepared salads, desserts, entrees, starches, vegetables, quiche, pot pies, soups and stews; and one in Cincinnati, which makes sandwiches.
Sales at the division were up 18% in the year to September 24, 2010, although significant investment in “factory, operating and business improvement processes” had dented profits, said the firm in its full-year results last month.
“From a standing start in 2008, we have attained number one market positions in the North Eastern US in the fresh manufactured sandwiches and leaf salads markets with number two positions in chilled entrees and chilled quiche.”
Bolt-on acquisitions
A significant re-fit of the Newburyport facility to improve standards and increase capacity was now “substantially complete”, said Greencore, which said last month that it was continuing to search for suitable bolt-on acquisitions but to date had “not identified a target which reflects the right combination of category competence, manufacturing capability and valuation”.
Greencore had envisaged operating around nine sites by around 2016, with three in the north-east, three in the mid-west and three on the west coast, Leamy told FoodManufacture.co.uk last summer.
However, he admitted that "there aren't that many acquisition opportunities in chilled prepared foods here, which is why we moved into this market”.
