Greencore Group plc Announces Intention to Sell Greencore Continental Convenience Foods

Greencore Group plc today announces its intention to sell its Dutch based convenience foods business to Convenience Foods Europe B.V., a subsidiary of Parcom Buy Out Fund IV B.V.

Jul 16 2010 --- Greencore Continental is a supplier of sandwiches, chilled pizzas and chilled sauces to customers based in Continental Europe. It operates from two facilities located at Liessel and Alphen in The Netherlands. The turnover of Greencore Continental was €58.2m for the year ended 25 September 2009 and the net assets of the business were €12.7 million as at the year end date.

The Disposal requires prior consultation with the relevant Works Councils as well as regulatory approval from the Netherlands Competition Authority. Completion of the Disposal is expected to occur on or before 30 August 2010.  The proceeds from the Disposal will be used to reduce Group net debt.

Commenting on this potential disposal Patrick Coveney, Chief Executive of the Group said:“We are pleased to announce this proposed disposal, which, if completed, is in line with our strategy of developing an industry leading position in convenience foods in the United Kingdom supplemented by a growing convenience foods business in the United States.”