Luxembourg-based investment firm Axxion has built more than a 3% stake in Irish food group Greencore, according to the Irish Independent.
Axxion invested for the 3% stake in Greencore on May 3 and is worth approximately €42.3m.
It is believed that Axxion has not previously invested in Greencore, and come at a time where the Irish food company has yet to see its shares recover after a 30% fall in March.
A Rock And A Hardplace
The news outlet reports that this is a ‘much-needed’ vote of confidence for Greencore as it faces uncertainty from both sides of the water. The Irish group is currently fighting to strengthen its position in the US and faces uncertainty in the UK over the potential Sainsbury’s and Asda merger.
In the states, the Irish group has had to shut down a supply plant in Rhode Island, which supplied big brands like Starbucks. It also detailed additional challenges with falling sales at its legacy portfolio. It is also looking to boost sales at Peacock Foods, the Illinois-based firm which it acquired in 2016.
Greencore CEO, Patrick Coveney, recently announced that he will spend half of his time in the US to take a ‘direct role in the strategic, organisational and commercial leadership of Greencore US’.
UK shares also took a hit last week after the announcement of a possible Sainsbury’s-Asda merger. Greencore is the sole sandwich supplier of the two chains but a merger would see the combined entity fall behind Marks & Spencer as one of its largest customers.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.