Irish food company Greencore has acquired HC Schau&Son,a US-based fresh food manufacturer,for a cash consideration of$13m(£8.3m).The agreement also includes deferred cash consideration of$4.3m(£2.8m).
An additional cash amount of up to$2m(£1.3m)will be paid dependent on certain performance conditions.Schau is a producer of fresh sandwiches and sushi as well as fresh entrees and other ready-to-eat items,sold through both the convenience store and grocery retail channels.It has facilities in Chicago and Jacksonville.
The company,which reported revenue of$32m last year,is a major supplier to 7-Eleven stores in the Chicago area.
This acquisition comes after the Greencore's acquisition of Marketfare Foods,a manufacturer of food-to-go products,in April 2012.
Greencore CEO Patrick Coveney said that Schau,along with Marketfare,will allow the company to take a strong step forward in executing the next stage of the strategy in US.
"Greencore now has a Food to Go platform in the US that will not only enable us to better serve our existing customers,but also to support what is a significant and exciting new business opportunity,"Coveney added.
Greencore plans to fund transaction through existing debt facilities,and expects the transaction to be modestly earnings accretive from the first year of ownership.
