LONDON (Reuters) - Irish-based Greencore Group (L:GNC) said on Monday it planned to buy U.S. convenience food manufacturer Peacock Foods for $747.5 million (596.4 pounds) in a bid to transform its U.S. business.
Greencore, which is listed in London, said it would buy the business on a debt free and cash free basis, backed by a fully underwritten rights issue offered to qualifying shareholders.
It said it expected to see significantly enhanced earnings and a targeted return ahead of cost of capital from the first full year of ownership.
Headquartered in Illinois, Peacock is focused on categories such as frozen breakfast sandwiches, snack kits for kids and salad kits.