Greencore acquires ready meal business International Cuisine

Irish food company Greencore has acquired International Cuisine (ICL), a private-label chilled ready meal business, from UK-based Hain Daniels for an undisclosed amount, as a part of its plan to strengthen its ready meal business in the UK.

ICL supplies chilled and frozen meal to UK and European retail and food service markets, and has annual revenues of approximately £45m.

The company owns an 85,000ft² ready meal facility in County Durham that employs around 500 people.

Greencore noted that its ready meal unit and ICL serve several common customers, and the acquisition will expand its ready meal category in the UK.

The acquisition includes gross assets of £16.7m.

The transaction, funded through Greencore’s existing debt facilities, is expected to have minimal impact on the company’s leverage.

A Greencore spokesman was quoted by Foodmanufacture.co.uk as saying that since the company is already a ready meal manufacturer, the latest acquisition complements its existing business.

"It is a modest acquisition but it increases our capacity and gives us an opportunity to grow," the spokesman said.

The deal marks the Irish company’s third acquisition in 2012; it bought US convenience food company MarketFare in April, and US fresh food manufacturer HC Schau & Son in June.

Greencore, headquartered in Dublin, Ireland, is a sandwich and ready meal maker, supplying UK supermarket chains including Marks and Spencer, Asda, Wm Morrison, Waitrose and J Sainsbury.

Hain Daniels, which was formed after Hain Celestial purchased the UK-based Daniels Group for $230m, produces soup and chilled ready meals, chilled drinks, fruit and sandwiches, desserts and meat-free foods.

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Image: Greencore noted that its ready meal unit and International Cuisine serve several common customers and the acquisition expands its ready meal category in the UK. Photo: Courtesy of Greencore Group.