IRELAND – Greencore Group plc, an Irish convenience food manufacturer has announced plans to sell its vegetable oil business Trilby to KTC Edibles for approximately €9.8 million (US$11M).
According to the company, the deal, which is expected to close in September this year, will enable Greencore to optimize its portfolio for sustainable growth, concentrate efforts and resources on core competencies, and bolster its balance sheet.
“Trilby is a great business with attractive assets and a fantastic team. However, given our strategic focus on the UK convenience food market, it is no longer a core part of Greencore’s plans,” said Dalton Philips, CEO of Greencore.
As of the half year ended 31 March 2023, the value of Trilby’s gross assets was €23.4 million (US$26M) while the profit before tax attributable to Greencore’s interest in Trilby for the full year ended 30 September 2022 was €2.9 million (US$3.2M).
Dalton expressed content with the deal, adding that they have found such a good home for Trilby’s operations and colleagues.
KTC, based in the West Midlands region of England, on the other hand, is a manufacturer and supplier of oil and fat products aiming to support its growth ambitions in Ireland with the deal.
On his part, Paresh Mehta, CEO of KTC said “We are very excited by the acquisition of Trilby, following a strong period of trading under Greencore’s ownership. KTC sees great potential in the Trilby team as an on-the-ground platform to support our growth ambitions in Ireland.”
As a manufacturer of convenience foods, Greencore’s portfolio includes chilled, frozen and ambient foods. The company supplies the major retail and food service channels.
It sells under brand names such as Greencore, Robert’s, Sushi San, Sutherland Deli, and Pandora Pickles.
Greencore operates 16 manufacturing facilities and 18 distribution centers in Ireland and the UK. It has approximately 14,000 employees. Greencore reported revenue of £495m (US$636m) in Q3 FY23, a 1.9% increase year-on-year.
However, the group had booked a loss of £6.2m in the six months to 31 March, compared to a £1m profit a year earlier.
Its adjusted EBITDA dropped to £39.9m from £43.8m and the margin declined almost a full percentage point to 1.3%.