Greencore shares rise on improved US outlook

Greencore shares rebounded by more than 9% yesterday after management reaffirmed the growth potential afforded by its recent purchase of US company Peacock Foods.

The Irish consumer foods group completed the near €700m acquisition of Peacock late last year — a deal it called “transformational” with the potential to quadruple Greencore’s US revenue base. Last month, however, Greencore’s share price fell by 7.5% as investors negatively reacted to one of its main US customers, Tyson Foods, agreeing to purchase rival group AdvancePierre — concerned it could see Greencore lose a major customer.

While shares stabilised on suggestion Greencore’s tie-in with Tyson, brought about by the Peacock deal, was strong and would be difficult to replicate, they grew more healthily yesterday on Greencore chief executive Patrick Coveney saying he did not see Tyson’s acquisition posing a problem for Greencore’s US growth plans.