Greencore buys US sandwich firm

Food company Greencore has acquired US sandwich maker MarketFare for $36 million.

The Arizona-headquartered company produces frozen and fresh food products including sandwiches, wraps, and Mexican food at two production facilities in Salt Lake City in Utah, and Fredericksburg, Virginia. It is a major supplier to the US convenience food chain, 7-Eleven, servicing over 1100 7-Eleven stores in the mid-Atlantic region.

The transaction, which is expected to close tomorrow, will be funded from Greencore’s existing debt facilities.

Revenue at Marketfare for the year to January 2012 was $65 million, while Ebidta (earnings before interest, tax, depreciation and amortisation) was $5.7 million.

Greencore chief executive Patrick Coveney said the acquisition represents an excellent opportunity for Greencore to develop its food to go business in the US.

“It builds additional scale with 7-Eleven, provides new competencies for us in the fast growing food to go category and extends our geographic footprint principally along the Eastern seaboard,” he said.

While more than 90 per cent of Greencore’s revenues are generated in the UK, where it is a major supplier of convenience food to most of the main supermarkets, it also has a presence on the East Coast of the US. In 2008 it acquired US company Home Made Brand Foods, while it acquired On A Roll in December 2010.

Earlier this year Greencore transferred its stock market listing to the UK following the acquisition of British sandwich and dessert supplier, Uniq. Greencore retains its headquarters in Dublin.