Greencore acquires H.C. Schau & Son
DUBLIN, IRELAND — Greencore Group P.L.C. continued its expansion in the United States with the announcement it has acquired H.C. Schau & Son, Inc., a fresh food manufacturer with facilities in Jacksonville, Fla., and Chicago, for $13 million in cash, plus deferred cash consideration of $4.3 million.
An additional cash amount of up to $2 million will be payable dependent on certain performance conditions, Greencore said.
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. The company has an established modern facility in Chicago and a new high quality start-up facility in Jacksonville.
In the year ended Dec. 31, 2011, Schau had sales of approximately $32 million.
The addition of Schau also is expected to build on the earlier acquisition of Marketfare Foods by adding scale with 7-Eleven, to whom Schau is a long-term supplier in the Chicago region.
Greencore said it has put in place a multi-year partnership with the new customer to supply its stores with approximately $50 million of Food to Go products on the East coast and in the Midwest from four of Greencore’s facilities. The delivery of this new business will be phased in between September 2012 and March 2013, the company said.
“Schau, along with Marketfare, will allow us to take a strong step forward in executing the next stage of our U.S. strategy,” said Patrick Coveney, chief executive officer of Greencore. “Greencore now has a Food to Go platform in the U.S. 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.”