Greencore To Sell Bristol Soups, Sauces Business To The Compleat Food Group

Credit: Steve Hatton of Electric Egg astatine Greencore’s Tamworth Distribution Centre successful 2022 aliases 2023/Greencore

Greencore plans to waste its soups and sauces business successful nan UK metropolis of Bristol to The Compleat Food Group to fulfill a regulatory hurdle successful its takeover of Bakkavor.

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“The disposal is taxable to general CMA support of nan undertaking successful lieu pursuing completion of a statutory nationalist consultation process,” Greencore said coming (18 November) successful a banal speech filing, without disclosing nan financial terms.

It reiterated comments made earlier this period that nan Bristol cognition generated astir £47m ($61.7m) successful gross successful nan twelvemonth to 26 September, equating to astir 1% of Greencore and Bakkavor combined.

The Compleat Food Group confirmed nan woody for nan Bristol tract successful a connection provided to Just Food, repeating Greencore’s study that nan CMA now needs to springiness nan projected acquisition nan greenlight.

In different improvement from The Compleat Food Group, it emerged past week that nan acquisitive UK business had purchased nan Julienne Bruno dairy-free marque aft nan institution went into administration.

Meanwhile, Greencore added coming it is optimistic of completing nan Bakkavor takeover connected target “early” successful nan caller year.

While nan merger pinch Bakkavor has been successful nan pipeline since astatine slightest March, nan CMA flagged successful October a imaginable title conflict successful own-label soups and sauces but did not person akin concerns for fresh meals and salads.

Selling nan Bristol works was a remedy projected by Greencore to forestall nan CMA progressing to a Phase-two investigation of nan takeover having concluded its Phase-one assessment.

Earlier this month, nan regulator said it was “proposing to judge remedies offered” by Greencore.

In a abstracted announcement today, Greencore issued its full-year results.

Revenue successful nan 52 weeks to 26 September roseate 7.7% to £1.95bn, while profit earlier taxation climbed 29.3% to £79.5m.

Elsewhere, adjusted EBITDA accrued 17.9% to £181.2m, and adjusted operating profit was up 28.9% astatine £125.7m.

Adjusted EPS surged 46.5% to 18.6 pence.

Greencore said underlying volume/mix grew 2.8% pinch 2% “impacts” from ostentation and pricing.

Like UK-based Bakkavor, Greencore operates successful food-to-go and convenience products supplied to awesome supermarkets specified arsenic Tesco, Sainsbury’s, Asda, Waitrose and Marks & Spencer.

Post nan takeover, Greencore shareholders will ain astir 59.8% of nan caller company, pinch Bakkavor investors holding nan remainder.

Greencore generated £1.34bn successful gross from food-to-go categories, up 7.2% from nan erstwhile 12 months. Convenience revenues climbed 8.3% to £609.2m.

Food-to-go includes sandwiches, salads, sushi and chilled snacks. Convenience categories characteristic chilled fresh meals, chilled soups and sauces, pickles and stiff Yorkshire Puddings.