Leading contract manufacturer Hearthside Food Solutions has recently made an announcement confirming that it has signed a definitive agreement to buy Greencore USA, a leader in frozen contract packaging and a top producer of refrigerated, fresh-made entrees, salad kits and sandwiches. The deal could be a significant step towards further growth and development of Hearthside’s network.
For the uninitiated, Greencore USA is the U.S. contract packaging business of Greencore Group plc which is a public company based in Ireland. Greencore USA operates 13 locations throughout North America, has 3,500 employees, and in 2017 boasted of earnings of US$1.4 billion. Acquiring the company will expand Hearthside’s network to 38 production facilities across the U.S. and Europe.
Hearthside, records show, was acquired by Charlesbank Capital Partners and Partners Group in May 2018 on behalf of their clients and Greencore USA, formerly called Peacock Foods, was owned by Charlesbank from 2010 to 2016. Charlesbank and Partners Group would be financing this transaction, with each of them having reserved substantial incremental capacity to continue investing organically.
Hearthside Chairman and CEO, Rich Scalise said acquiring Greencore USA will expand their production, R&D and innovation capabilities across frozen, refrigerated and fresh entrees/sandwiches categories, where Greencore USA is an established leader. Managing Director of Partners Group, Chris Russell believes combining the two companies would generate promising new product and service prospects for their customers.
Ryan Carrol, Managing director at Charlesbank, stated that buy Greencore USA will help in expanding Hearthside’s position in high-growth categories and further scale operations. The companies exhibit considerable synergies in operating principles, culture and fundamental strategy, as well as share a commitment to build long-term relationships with leading brands and deliver outstanding products, he added.
Reportedly, Barclays and HSBC were the financial advisors to Hearthside for this transaction and Ropes & Gray LLP served as the legal advisor to Hearthside, Charlesbank and Partners Group. The deal is subject to customary closing conditions and regulatory approvals.