Greencore, the Ireland-based convenience foods manufacturer, plans to sell its molasses businesses to United Molasses Marketing.
London-listed Greencore, one of the largest private-label suppliers in the UK, said this morning (28 July) it has signed a conditional agreement with United Molasses Marketing and its Ireland-based division for the former to acquire the business for a cash consideration of GBP15.6m (US$20.1m).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Its molasses unit is involved in the import and distribution of animal feed across the island of Ireland, the company said in a statement.
Greencore added it will use the proceeds from the sale, which is subject to the approval of the relevant anti-trust authorities, to strengthen its balance sheet.
The company also issued a trading update this morning for the third quarter running to 26 June, and said annual guidance – withdrawn in March – remains suspended due to the uncertainties from the pandemic.
Greencore said revenue fell 34.1% in the quarter to GBP240.6m, with the food-to-go segment down 50.6%, while its other convenience food categories were up 2.2%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOver the nine-months, reported revenue dropped 10.6% to GBP953.3m and food-to-go declined 16.9%. Other categories rose 1.4%.
On a pro-forma basis, Greencore said its third-quarter revenue dropped 36% but was “23% below prior year levels in July to date”
The group pointed to “encouraging sequential improvement of demand in food-to-go categories through Q3 and into Q4”.
Over the first nine months of Greencore’s financial year, reported revenue dropped 10.6% to GBP953.3m and food-to-go declined 16.9%. Other categories rose 1.4%.
