Convenience food company Greencore said this morning it has acquired Home Made Brand Foods Inc., a manufacturer in the chilled food market in the north east region of the United States, for an initial payment of $44 million (€28.2 million).
Greencore said a further payment up to a maximum of $10 million will be payable dependent on Home Made Brand Foods' performance in the year to December 31st, 2008.
The acquisition is expected to be modestly EPS accretive from financial year 2009.
Home Made Brand Foods expects to generate above $40 million in revenues this year and has potential manufacturing capacity to increase this to $100 million within its existing facility.
Greencore's chief executive Patrick Coveney described the acquisition as an "excellent strategic deal".
He said Greencore was brining its experience of supplying chilled prepared food for the UK market to the US consumer.
"We have spent the last two years on the ground and are excited by both the significant recent increase in the level of retailer investment in chilled food categories and by the positive consumer response to these initiatives," he said.
Its management team will remain in place post the acquisition, Greencore said.
Greencore also plans to relocate key personnel to the United States to develop its US business, and added that Fergal Leamy, development director of the convenience foods division, has been appointed CEO of Greencore USA.