Hearthside Food Solutions acquires Greencore USA

Hearthside Food Solutions, a contract manufacturer, said it is acquiring Greencore USA, a frozen contract packaging and a producer of refrigerated, fresh-made sandwiches, entrees and salad kits.

The transaction remains subject to regulatory approval and customary closing conditions.

Greencore USA is the US unit of Greencore Group, an Ireland-based public company. Greencore USA operates 13 locations across North America, with 3,500 employees, and 2017 revenues of $1.4 billion.

"Consumer choice is driving growth in frozen, refrigerated and fresh sandwiches/entrees, where Greencore USA is a recognized leader. Leading brands are expanding into these categories and are seeking additional value chain services. The acquisition of Greencore USA will expand our production, innovation, and R&D capabilities across these categories," said Rich Scalise, Hearthside chairman and CEO. Hearthside, headquartered in Downers Grove, is a leading producer of nutrition and snack bars, as well as a full-service provider of high-quality snack food products and packaging services.

Hearthside was acquired in May 2018 by Charlesbank Capital Partners and Partners Group on behalf of their clients. Greencore USA, prior to being purchased by Greencore Group PLC, was known as Peacock Foods and was owned by Charlesbank from 2010-2016. The equity for this transaction will be provided by Charlesbank and Partners Group, each of which has reserved significant incremental capacity to continue to invest organically and through acquisition in the Hearthside platform.

The Greencore USA acquisition expands and diversifies the Hearthside network to 38 production facilities in the US and Europe.

"The synergies and complementary strengths of Hearthside and Greencore USA are impressive. Both serve the world's premier food companies, and both are known for and committed to lean, world-class manufacturing, setting high standards for quality, safety, and speed-to-market. Both companies are also committed to innovation and exemplary customer service, possessing complementary category expertise and capabilities. The combination of the two companies will generate exciting new product and service opportunities for their customers," said Chris Russell, managing director, Partners Group.