Greencore has acquired UK-based firm The Sandwich Factory from Cranswick for £15m, boosting its food to go presence in the convenience sector.
The Sandwich Factory operates from a single site in Atherstone, Warwickshire, where it produces a range of food to go products for distribution in the convenience store and foodservice channels. In the year to 31 March 2016, the firm generated net revenues of £42m from manufactured products.
Greencore said that the deal will extend its presence in the high growth food to go category outside of its current core business with large grocery customers. It added that the facility also offers it an opportunity to modestly increase overall capacity across Greencore’s food to go network and will bring new capabilities in short-run, specialist product formats.
Commenting on the transaction, 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.”
Adam Couch, CEO of Cranswick, commented: “I am pleased to announce the sale of our sandwich business to Greencore which is very much in line with our strategy of focusing on our core protein businesses. Moreover I am particularly delighted that the sandwich division is being acquired by a proven global leader in Greencore who will bring new opportunities and strengths to this business, its customers and the staff.”
Cranswick today updated the market on its trading for the three months to 30 June. The group said that its underlying revenue was 5% higher than the same period last year, with corresponding volumes up 12% as the benefit of lower input prices continued to be passed on to its customers.