Greencore acquires mineral water company and cake firm in €21m deal
For £15m (€21m) the group has acquired two businesses including Danone’s mineral water facility. The second company bears the unusual name The Ministry of Cake and both neatly fit into the Irish-based group’s product offerings in that market.
The cake business produces frozen cakes, cheesecakes and pastries and is based in Taunton, Somerset.
It is a specialist supplier to the foodservice sector and generated sales last year of £16m.
Danone’s water facility in Blaen Twyni produces natural and flavoured spring waters from the Twyni spring in the Brecon Beacons National Park in Wales.
Set up in 2001, this facility will allow Greencore’s mineral water division to complement its existing facility in Lennoxtown, Scotland, which supplies the strongly growing flavoured water marketand convenience storechannel.
Greencore chief executive designate Patrick Coveney said: “Our convenience foods division continues to compete in attractive product categories, growing at levels above the total food market and delivering strong economic returns for both our customers and for Greencore.”
Mr Coveney will replace David Dilger as boss of Greencore at the end of March 2008.
It is anticipated that under his leadership the group will expand its convenience food operations through acquisition as well as organically in the years ahead.
Shares in the group rose 2c to €4.40 in Dublin yesterday, despite the massive fall in Irish stocks on fears that the global credit crunch would hit the Irish global economy hard in the period ahead.
