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Greencore To Sell Its Entire US Business For US$1.075 Bln

Greencore Group plc (GNC.L) said that it has entered into an agreement to sell its entire US business, "Greencore US", to an affiliate of Hearthside Food Solutions LLC for US$1.075 billion or 817 million pounds on a cash and debt-free basis.

The company noted that the net proceeds of 802 million pounds will allow for Greencore to declare a Special Dividend of 72 pence per Ordinary Share, representing an aggregate amount of 509 million pounds in cash, to shareholders as soon as practicable following completion of the Capital Reduction and the Lender Consent/Refinancing.

The net proceeds of the Transaction are estimated to be $1.055 billion or 802 million pounds, being the estimated total cash proceeds less the payment of costs relating to the Transaction, estimated at $20 million or 15 million pounds and which will be subject to customary adjustments for the cash, debt, and working capital in Greencore US at Completion.

Following Completion, Greencore US will cease to be part of the Group and the Group will comprise the Retained Group, which itself principally comprises the Convenience Foods UK & Ireland segment of the Group.

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