Convenience food group Greencore has reportedly said that it has completed the sale of its entire US business to rival Hearthside for €863 million.
Greencore announced the planned sale of its US operations to an affiliate of the contract manufacturing services for baked goods and bars on a cash and debt-free basis in October last.
The transaction is at an EV/EBITDA multiple of 13.4x/14.2x2,3, which Greencore said represents a ‘compelling and immediate realisation of value’.
Net proceeds from the sale, of £802 million, will lead Greencore to declare a special dividend of 72 pence per ordinary share (totaling £508 million) to its shareholders.
“We believe that the proposed sale of our US operation represents a compelling and immediate realisation of value for Greencore’s shareholders,” said Patrick Coveney, Greencore chief executive.
“We have always had a firm conviction on the underlying value and growth prospects of our US business and believe that this offer fully reflects that. Looking ahead, we are confident that we can deliver further growth and returns in the dynamic UK market.”
Shareholders at Greencore have backed the Irish food group’s plans to sell its US business for over $1 billion on the 8 November.
This was confirmed at a shareholder meeting, however, around 20% disagreed with how the company planned to return some of the money to shareholders.
© 2018 Checkout – your source for the latest Irish retail news. Click subscribe to sign up for the Checkout print edition.