Convenience foods giant Greencore has announced that it has acquired food to go business The Sandwich Factory from Cranswick plc.
The business, which operates from a single facility in Atherstone, Warwickshire, produces food to go products for the convenience channel. Its net revenue in the financial year ended 31 March 2016 was £42 million.
“This acquisition makes strong strategic sense for Greencore, given our ongoing focus on the food to go market,” said Greencore chief executive Patrick Coveney.
“The Sandwich Factory will extend our reach into customer channels in which we are currently under represented, notably convenience stores and the travel sector, and will also bring new product types into the Greencore portfolio. We are delighted to be adding more capacity to our manufacturing network, and to be welcoming new colleagues to our business.”
Clive Black of Shore Capital Stockbrokers said that he sees the transaction “as mutually beneficial with the acquired business forming a somewhat non-core activity for Cranswick whereas Greencore has emerged as a leading and formidable player in this market.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
