Greencore Group, the Irish convenience food specialist, is offloading its US business in a $1 billion deal to contract manufacturer Hearthside Food Solutions.
The deal sees Hearthside expand into high-growth categories of fresh, refrigerated and frozen sandwich and entrees.
Hearthside was acquired in May this year by Charlesbank Capital Partners and Partners Group.
Before it was acquired by Greencore Group, Greencore USA was known as Peacock Foods and was owned by Charlesbank.
Charlesbank and Partners Group are providing the funds for the acquisition which diversifies the Hearthside network to 38 production facilities across the US and Europe.
“Consumer choice is driving growth in frozen, refrigerated and fresh sandwiches/entrees, where Greencore USA is a recognised leader,” said Rich Scalise, Hearthside Chairman and CEO.
He added: “The acquisition of Greencore USA will expand our production, innovation, and R&D capabilities across these categories.”
Ryan Carroll, Managing Director at Charlesbank, said: “The Greencore USA acquisition will expand Hearthside’s position in high-growth categories and broaden capabilities for existing and new customers, while further scaling operations.”