Acquisition and Disposals

RNS Number:2149S
Greencore Group PLC
05 October 2005

GREENCORE GROUP PLC


CONTACT:
PATRICK COVENEY, CHIEF FINANCIAL OFFICER                  TEL: +353 (0)1 6051003
                                                          FAX: +353 (0)1 6051103

BILLY MURPHY/JOE CARMODY, DRURY COMMUNICATIONS            TEL: +353 (0)1 2605000





GREENCORE REBALANCES CONVENIENCE FOOD PORTFOLIO



Greencore Group plc ("Greencore") today (Wednesday, 5 October 2005) announces a
number of development initiatives undertaken during the last two months.  These
comprise the acquisition of a UK premium sandwich business, the disposal of the
Group's underperforming UK pizza business and the disposal of a non-core meat
products business.



1. ACQUISITION OF OLDFIELDS LIMITED



Greencore has extended its number one market position in the growing UK sandwich
category through the acquisition of Oldfields Limited ("Oldfields") for a
consideration of Euro17.3 million.  Oldfields is the leading producer of premium
sandwiches and paninis in the UK coffee bar sector, with annual output in excess
of 25 million sandwiches.  The business operates from a newly built
state-of-the-art facility in East London and has significant available capacity
to support both the expected growth in the Oldfields business and substantial
growth in Greencore's existing business.  The gross assets of the business
acquired were Euro5.4 million.



This acquisition is consistent with Greencore's strategy of:

- Extending its leadership positions in concentrated and growing chilled
  convenience food categories.

- Complementing its strong positions with multiple food retailers by increasing
  its presence in 'alternative channels'.

- Increasing its value to consumers and customers by delivering more 'crafted'
  premium offerings.



2. DISPOSAL OF GREENCORE PIZZA



The Group has sold its UK pizza business to Pizza Canadian Limited (a newly
formed company established by members of the existing management team) for a
nominal consideration.  Greencore Pizza was involved in the manufacture of both
topped pizza and pizza crusts, primarily for the retail multiple market.



Notwithstanding the operational improvement over the past 12 months, this
business, as flagged in the Greencore 2004 Annual Report, has consistently
failed to deliver the performance or returns that the Group demands.
Consequently, the Group has decided to exit this sector of the UK convenience
food market and to focus its resources on other categories where the Group has
attractive market positions.  The gross assets of Greencore Pizza as at 30
September 2004 were Euro36.0 million.  An exceptional charge of approximately Euro40
million (net of tax) relating primarily to a write-down of asset values will be
reflected in the September 2005 financial statements.



3. DISPOSAL OF FELDHUES



The Group has also sold a small non-core food business, Feldhues GmbH ("Feldhues
"), to O.N. Nederland B.V., a Netherlands based private investment group for a
consideration of Euro10 million.  Feldhues produces a range of deli-style meat
products and has operations in Metelen, Germany, and in Monaghan, Ireland.  The
gross assets of Feldhues as at 30 September 2004 were Euro7.6 million.



Greencore Group Chief Executive David Dilger said:



"These developments represent important steps in the evolution of the Group's
Convenience Food portfolio.  We are especially excited about Oldfields, which
will accelerate our move to the premium end of the market and increase our
presence in 'alternative channels'.  Indeed, this move represents something of a
watershed for Greencore, it being our first acquisition since Hazlewood in early
2001.



"Our decision to exit the UK pizza business, while not made lightly, reflects
the determination of the Group to maintain rigorous financial discipline.  Taken
together, these developments clearly signal our commitment to rebalance the UK
portfolio towards categories where we can sustain strong leadership positions,
satisfy growing consumer needs and deliver attractive returns on capital.''



ENDS


CAROLINE BERGIN
GROUP COMPANY SECRETARY
ST STEPHEN'S GREEN HOUSE
EARLSFORT TERRACE
DUBLIN 2                                                         5 OCTOBER 2005




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