Greencore management buyout may be a possibility, says British analyst

A MANAGEMENT buyout of Irish-owned food group Greencore is looking an increasingly likely possibility, according to one British-based market analyst.

Clive Black, an analyst with British-based stockbrokers Shore Capital, now believes that recent market speculation about a mystery bidder for Greencore, the former owner of Irish Sugar, may have been off the mark.

Earlier this week, market speculation once again suggested that Indian food magnate Ranjit Boparan was Greencore’s mystery suitor. However, Shore Capital and other British analysts are now saying that Boparan’s focus is unlikely to shift from other pressing concerns.

Having acquired Northern Food for £342m (€400m) in March, Boparan Holdings is fully taken up with the £200m in debt it also inherited, plus managing the £200m pension fund which also came with the Northern acquisition.

Clive Black said: “We cannot rule out that management may be involved in any change of ownership of the Greencore business in tandem perhaps with private equity.”

With Greencore’s price staying steadily between 75c and 85c in recent weeks, the company could be worth up to €300m. As such, British-based market analysts believe that no food group in Ireland or Britain has enough liquidity to purchase Greencore.

Clive Black said: “Greencore is a good company operated by management that we hold in high regard. The business is one of the best prepared food manufacturers in the UK, augmented by the recent acquisition of Uniq, from which it has yet to harvest the benefits, including substantial tax losses.”