GREENCORE ANNOUNCES ITS INTENTION TO MERGE WITH NORTHERN FOODS
The Boards of Greencore and Northern Foods, two of the leading food manufacturers in the UK and Ireland, are pleased to announce that they have reached agreement on the terms of a recommended merger of equals to create Essenta Foods.
If the Merger becomes effective, Northern Foods Shareholders will receive 0.4479 of a New Greencore Share for every Northern Foods Share held by them. On this basis, Greencore Shareholders and Northern Foods Shareholders will each hold approximately 50% of the enlarged, fully diluted, share capital of the Combined Group. Greencore will be renamed Essenta Foods upon the Merger completing.
The Boards of Greencore and Northern Foods believe that the Merger is a compelling prospect for both companies, creating a business which offers substantial benefits for shareholders, customers and employees. The Boards of Greencore and Northern Foods believe that the Merger will:
- combine two highly complementary businesses to create an operator with an enhanced presence in the attractive private label convenience foods category with significant branded positions in Biscuits (Fox's) and Frozen Pizzas (Goodfella's);
- provide the ability to drive cost efficiencies and combine complementary customer bases and provide opportunities to deepen relationships with key customers; and
- provide a stronger credit profile, which will help to ensure greater financial and strategic flexibility in future.
Commenting on the Merger, Patrick Coveney, CEO of Greencore, said:
“Essenta Foods presents a compelling opportunity for all stakeholders. It creates a substantial chilled prepared food company in fast growing categories in the UK which is enhanced by strong branded positions in biscuits and frozen food. The investment case is underpinned by tangible cost synergies and the platform for further growth in the UK, Ireland and the US. The time is right for both companies to build a real ‘better than both’ business and I look forward to bringing together the teams from Greencore and Northern Foods to deliver on this opportunity.”