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Greencore Acquires Home Made Brand Foods, Inc.

Posted on: Wednesday, 30 April 2008, 09:00 CDT

NEWBURYPORT, Mass., April 30 /PRNewswire/ -- GREENCORE GROUP PLC ("Greencore" or the "Group"), one of Europe's leading convenience food and malt producers, today announces the acquisition of Home Made Brand Foods Inc. ("HMBF"), a leading manufacturer in the chilled food market in the North East region of the United States. This acquisition marks the entry by Greencore into the growing chilled convenience food market in North America.

Based in Newburyport, Massachusetts, HMBF is a regional leader in fresh prepared food. It manufactures and supplies a range of fresh food products including fresh prepared meals and salads, sandwiches and quiche to a customer base that includes leading regional retailers such as Stop & Shop, Hannaford and Publix. In the current year, HMBF expects to generate in excess of $40 million in revenues and has potential manufacturing capacity to increase this to $100 million within its existing facility. HMBF's experienced management team led by Rick Walters will remain in place post the acquisition.

The initial consideration payable by the Group is $44 million. Further consideration will be payable up to a maximum of $10 million dependent on HMBF's performance in the financial year to December 31, 2008. The acquisition is expected to be modestly EPS accretive from FY09.

Over the past two years Greencore has undertaken a detailed business development effort in the US chilled food market. The Group has deepened its knowledge of the market and established strong relationships with key regional and national retailers in the US as well as with potential brand licensors. These relationships, taken together with Greencore's distinctive operational capability in chilled prepared food, will enable the Group to accelerate the existing growth plans of HMBF to deliver a scale US business.

Greencore will relocate key personnel to the US to develop the Group's US business. Fergal Leamy, currently development director of the Convenience Foods division, has been appointed CEO of Greencore USA and he will be joined in the US by other leaders in the areas of chilled food manufacturing, supply chain and product development.

Commenting on the US opportunity, Patrick Coveney, Greencore's chief executive said: "This is an excellent strategic deal for Greencore. We are combining our proven operational capabilities in convenience foods, developed over 20 years in the UK market, with the emerging US consumer and retailer demand for high quality, chilled prepared foods. We have spent the last two years on the ground and are excited by both the significant recent increase in the level of retailer investment in chilled food categories, and by the positive consumer response to these initiatives. HMBF represents a strong platform acquisition for us -- a profitable, well run, regional leader with significant headroom for further growth. Rick Walters and his team are widely respected across the industry and we are delighted that they are coming on board to help deliver our US strategy."

Fergal Leamy, CEO of Greencore USA, commented: "The HMBF acquisition represents a significant opportunity for us to take advantage of US market growth and to leverage our world class chilled food manufacturing expertise from the UK. In particular, we will bring superior technical food standards and cost-efficiency measures to a developing segment in the US. We have seen that in response to positive consumer trials, many major retailers have begun to gear their business around chilled foods in store, in the supply chain and in marketing efforts, which is generating further consumer demand. These combined elements give us an attractive platform for our planned US expansion."

Rick Walters, Managing Director of HMBF, said: "HMBF enjoys an excellent reputation in the New England, Mid-Atlantic, and Midwest regions of the United States and has strong relationships with many leading retailers. As the US market grows, Greencore will enhance our position as a leader in the industry by combining our local expertise with their experience and success in the developed European market."

For further information, please contact: Eoin Tonge, Group Capital Markets Director +353 (0)1 605 1036 John Dudzinsky/Michael Henson, Taylor Rafferty Associates +1 212 889 4350 Billy Murphy/Anne-Marie Curran, Drury Communications +353 (0)1 260 5000 Rory Godson/Marie Cairney/Elizabeth Rous, Powerscourt +44 (0)207 250 1446 Notes to Editors About Greencore

Greencore Group plc is a leading international manufacturer of convenience foods and malt. It has sites in four countries of the European Union employing some 8,000 people. Its foods are supplied to major retail, manufacturing and foodservice customers in the UK & Ireland as well as many in Continental Europe. See http://www.greencore.com/

About Home Made Brand Foods

Home Made Brand Foods (HMBF) is a United States Department of Agriculture (USDA) approved upscale prepared food manufacturer located in Newburyport, Massachusetts. HMBF produces over 250 different products, packages 25 private labels, and develops and manufactures numerous special recipe products for the retail, food service and institutional trades. The company was previously owned by PNC Equity Partners, L.P., Mr. Richard Walters, Mr. John Palmieri and certain members of management.

Greencore Group plc

CONTACT: Eoin Tonge of Group Capital Markets Director,+353 (0)1 605 1036; John Dudzinsky, or Michael Henson, both of Taylor RaffertyAssociates, +1-212-889-4350; or Billy Murphy, or Anne-Marie Curran, both ofDrury Communications, +353 (0)1 260 5000; or Rory Godson, or Marie Cairney, orElizabeth Rous, all of Powerscourt, +44 (0)207 250 1446

Web site: http://www.greencore.com/

Source: PRNewswire

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