Dublin-headquartered Greencore Group convenience food business has announced the sale of its edible oils unit Trilby to UK-based KTC for approximately €9.8m ($10.8m).
Trilby imports and distributes vegetable oils and fats for the food processing industry and sells approximately 60,000 tonnes of the products each year into Ireland, the UK and the Netherlands.
Greencore said it will use the proceeds from the transaction for general purposes and to strengthen the company’s balance sheet.
It said it is aiming to optimise its portfolio for sustainable growth with the sale and “focus its efforts and resources on its core competencies”
Dalton Philips, CEO of Greencore, said: “Trilby is a great business with attractive assets and a fantastic team. However, given our strategic focus on the UK convenience food market, it is no longer a core part of Greencore’s plans.
“As such, we are very pleased to have found such a good home for Trilby’s operations and colleagues.”
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KTC, based in the West Midlands region of England is a manufacturer and supplier of oil and fat products. It is aiming to support its growth ambitions in Ireland with the deal.
The company is majority owned by Endless a private-equity firm based in northern England..
Paresh Mehta, CEO of KTC Edibles, said: “We are very excited by the acquisition of Trilby, following a strong period of trading under Greencore’s ownership.”
Greencore reported revenue of £495m ($636m) in Q3 FY23, a 1.9% increase year-on-year.
A manufacturer of convenience foods, its portfolio includes chilled, frozen and ambient foods. The company supplies the major retail and foodservice channels.
It sells under brand names such as Greencore, Robert’s, Sushi San, Sutherland Deli and Pandora Pickles.
Greencore operates 16 manufacturing facilities and 18 distribution centres in Ireland and the UK. It has approximately 14,000 employees.
Earlier this year, Greencore was seeking margin recovery as it slipped to a loss.
The group had booked a loss of £6.2m in the six months to 31 March, compared to a £1m profit a year earlier.
Its adjusted EBITDA dropped to £39.9m from £43.8m and the margin declined almost a full percentage point to 1.3%.