Greencore strengthens presence in US

Ireland-based Greencore Group is strengthening its presence in the US with a takeover of food-to-go products maker Lettieri’s and a new investment at its Jacksonville, Florida facility.

The terms of the takeover deal have not been disclosed.

Lettieri’s primarily caters to the convenience store channel and operates from a plant in Shakopee, Minnesota.

Made frozen but served hot using roller grills and heated cabinets, the company’s products include breakfast sandwiches, stuffed baguettes, breadsticks and wrap dogs for the roller grill.

For the year ended March 2013, Lettieri’s reported revenues of $36.4m with $4.7m in EBITDA.

Greencore stated that the deal, which will be funded from its existing debt facilities, is expected to be modestly earnings accretive in the current financial year.

The company is investing around $10m at its manufacturing site in Jacksonville, Florida, to add the capability to produce frozen food-to-go products; the first such products will be available in the market in the fourth quarter of this year.

This investment is expected to provide the company with a capacity to generate up to $100m revenues.

Commenting on the investments, Greencore CEO Patrick Coveney said, "Both the Lettieri’s acquisition and the capital investment into Jacksonville deepen our manufacturing capability and widen our product range to more fully serve the food-to-go needs of our customers in the small store channels.

"Both investments are consistent with our long-term approach of developing high-quality manufacturing facilities to meet the specific growth strategies of our key US customers."

For the 13-week trading period ended 27 December 2013, the company reported a 7.2% year-on-year increase in revenues to £320.5m.

Greencore is a convenience food manufacturer in the UK and the US with a presence across the food to go, chilled prepared meals, chilled soups and sauces, ambient sauces and pickles, cakes and desserts and Yorkshire puddings segments.

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Image: Lettieri’s portfolio includes stuffed baguettes, breakfast sandwiches and wrap dogs. Photo courtesy of Vichaya Kiatying-Angsulee at FreeDigitalPhotos.net.