Hearthside Foods to acquire Greencore’s US contract packaging business

Hearthside Food acquisition of Greencore USA : Illinois-based contract manufacturer Hearthside Food Solutions has agreed to acquire Greencore USA, the US subsidiary of Irish food company Greencore Group, for an undisclosed price.

Greencore USA is engaged in frozen contract packaging and also in the production of refrigerated, fresh-made sandwiches, entrees, and salad kits.

The company, which operates 13 locations across North America, employs 3,500 people. In 2017, Greencore USA registered revenue of $1.4 billion.

Its acquisition by Hearthside Food is expected to boost the growth and development of its network, which will grow to 38 production facilities across the US and Europe.

Hearthside Food acquisition of Greencore USA. Photo courtesy of Hearthside Food Solutions LLC

Rich Scalise – Hearthside Food Chairman and CEO, commenting on Hearthside Food acquisition of Greencore USA, said: “Consumer choice is driving growth in frozen, refrigerated and fresh sandwiches/entrees, where Greencore USA is a recognized leader. Leading brands are expanding into these categories and are seeking additional value chain services. The acquisition of Greencore USA will expand our production, innovation, and R&D capabilities across these categories.”

Greencore USA before its acquisition by Greencore Group was known as Peacock Foods and was owned by Charlesbank Capital Partners from 2010 to 2016. Charlesbank Capital Partners had acquired Hearthside Food alongside Partners Group in May 2018 on behalf of their clients.

Charlesbank and Partners Group will be providing the equity for the acquisition by Hearthside Food.

Ryan Carroll – Managing Director at Charlesbank, commenting on Hearthside Food acquisition of Greencore USA, said: “The Greencore USA acquisition will expand Hearthside’s position in high-growth categories and broaden capabilities for existing and new customers, while further scaling operations. We are excited about the considerable synergies in culture, fundamental strategy, and operating principles.

“These companies share a commitment to making excellent products and building deep, long-term relationships with the world’s leading brands, as evident in their investments in world-class manufacturing, quality, safety, innovation and, most importantly, people. We are thrilled to work with the Greencore USA team again and to welcome them to the Hearthside family.”

Hearthside Food acquisition of Greencore USA will be based on receipt of regulatory approval and meeting of customary closing conditions.