Convenience food maker Greencore announced today (25 July) that it has acquired The Sandwich Factory Holdings from Cranswick, in a deal valued at GBP15m (US$19.7m).
The acquisition expands Greencore’s presence in the food-to-go sector. Currently, the company’s core food-to-go operations are centred on “large grocery” customers in the UK whereas The Sandwich Factory produces products for convenience and foodservice channels.
Greencore added that the acquisition offers an opportunity to “modestly increase overall capacity” across its food-to-go network and will bring new capabilities in short-run, specialist product formats. The Sandwich Factory operates a facility in Atherstone, Warwickshire, and net revenue from in the year to 31 March totalled GBP42m.
“This acquisition makes strong strategic sense for Greencore, given our ongoing focus on the food to go market. 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,” Greencore CEO Patrick Coveney said.
“We are delighted to be adding more capacity to our manufacturing network, and to be welcoming new colleagues to our business.”
The transaction is expected to be neutral to earnings during the current fiscal and “modestly accretive” thereafter.
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For its part, Cranswick said the sale was part of its strategy to focus on core protein operations. “I am pleased to announce the sale of our sandwich business to Greencore which is very much in line with our strategy of focusing on our core protein businesses. Moreover I am particularly delighted that the sandwich division is being acquired by a proven global leader in Greencore who will bring new opportunities and strengths to this business, its customers and the staff to whom, on the Board’s behalf, I would like to extend our thanks for their long standing loyalty and commitment to Cranswick,” Adam Couch, CEO of Cranswick, commented.
Cranswick also booked a jump in sales today, with revenue lifted by higher volumes and M&A.