Marketfare Foods manufactures food-to-go products for convenience stores in the US. It produces store-branded goods for the retailer 7-Eleven, servicing around 1,100 stores in the Mid-Atlantic region.
Increased US presence
A spokesperson for Greencore told BakeryAndSnacks.com: “It’s a perfect fit with our strategy for the US”.
“It strengthens our partnership with a key customer in the US (7-Eleven).”
Greencore CEO Patrick Coveney added: “The new product capability and geographic expansion provide the opportunity to expand further with our existing customers; the acquisition represents the next step in our strategy to build a business of real scale in the US."
Greencore has acquired manufacturing capabilities in Fredericksburg, Virginia and Salt Lake City, Utah through the Martketfare deal.
The Irish company already has two production sites in the region located near Boston, Massachusetts.
In 2011, Marketfare turned-over $65m and posted profits of $5,7m. The business holds gross assets worth $20.1bn
Further expansion in US?
Greencore has been in the US for four years and in in December 2010 it boosted its presence with the acquisition of sandwich and wraps firm On a Roll.
Asked whether Greencore was looking to further acquisition in the US a spokesperson responded: “We do have intent to build a sustainable business in the US and will look at opportunities.”
Greencore expects around $3.5m in integration and transaction costs as a result of the Marketfare deal.
It is funding the deal through existing debt facilities.