Ireland’s Greencore acquires Sandwich Factory from Cranswick

Irish primary and prepared foods manufacturer Greencore Group has acquired UK-based company The Sandwich Factory from Cranswick.

Greencore will be paying approximately £15m, which is subject to adjustment post completion in relation to levels of working capital and net debt, and will be funded from existing debt facilities.

According to the deal, the transaction is expected to be neutral to earnings in the 2016 fiscal year and accretive thereafter.

Greencore CEO Patrick Coveney said: “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.

“We are delighted to be adding more capacity to our manufacturing network, and to be welcoming new colleagues to our business.”

Loacated in Atherstone, Warwickshire, The Sandwich Factory produces a wide range of food-to-go products for convenience store and food service channels. The company registered revenues of £42m for the financial year ending on 31 March.

The acquisition will enhance Greencore’s presence in the food-to-go category.

The facility is also expected to help increase overall capacity across Greencore’s food-to-go network and bring new capabilities in short-run, specialist product formats.