Greencore Group, a convenience food business headquartered in Dublin, has announced the sale of its edible oils unit, Trilby, to UK-based KTC for approximately €9.8m ($10.8m). The Trilby unit imports and distributes vegetable oils and fats for the food processing industry, selling around 60,000 tonnes annually to Ireland, the UK, and the Netherlands.
The proceeds from this transaction will be used by Greencore for general purposes and to strengthen its balance sheet. The company has expressed its aim to optimize its portfolio for sustainable growth with this sale, allowing them to focus efforts and resources on their core competencies.
According to Dalton Philips, CEO of Greencore, Trilby is a great business with attractive assets and a fantastic team. However, given their strategic focus on the UK convenience food market, it is no longer a core part of Greencore’s plans. He is pleased to have found a good home for Trilby’s operations and colleagues.
KTC, a manufacturer and supplier of oil and fat products based in the West Midlands region of England, is the majority owner of Trilby and aims to support its growth ambitions in Ireland through this acquisition. The private-equity firm, Endless, which is based in northern England, is the majority owner of KTC.
Greencore reported a 1.9% increase year-on-year in revenue for Q3 FY23, reaching £495m ($636m). As a manufacturer of convenience foods, their portfolio consists of chilled, frozen, and ambient foods, supplying major retail and foodservice channels. Some of their well-known brand names include Greencore, Robert’s, Sushi San, Sutherland Deli, and Pandora Pickles.
With 16 manufacturing facilities and 18 distribution centers in Ireland and the UK, Greencore currently employs approximately 14,000 people. Earlier this year, the company sought margin recovery as it faced a loss of £6.2m in the six months to 31 March, compared to a £1m profit in the previous year. Adjusted EBITDA dropped to £39.9m from £43.8m, with the margin declining by almost one percentage point to 1.3%.
