Greencore Sells Malt Business to Axéréal

Greencore has agreed to divest its malt business, including the Pauls Malt unit in UK, the Minch Malt unit in Ireland and the Belgomalt unit in Belgium, to Axéréal Union De Coopératives Agricoles for €116.25m ($159.6m).

The Greencore Malt business consists of seven malting plants with a total production capacity of 520,000t per annum and a consultancy arm, Global Malting Services.

The sale, however, does not include some property assets including land at Athy, Co Kildare, which were previously held within Minch Malt.

The net proceeds from the sale will be used to decrease the company’s debt of €283.8m ($389.6m), which will help boost its financial position.

The proceeds will also help the company pursue future growth opportunities, which will support its strategy in the US and UK convenience foods markets.

Greencore CE Patrick Coveney said the deal completed the company’s journey into a focused convenience foods player, with a strong position in the UK market and a growing regional presence in North America.

“Looking ahead, this deal will tighten our strategic focus, strengthen our balance sheet and provide capital to fund future growth over time in both our UK and US convenience foods markets,” he said.

The divestment is subject to approval by Greencore stakeholders.