Materialising as the unknown bidder for food supplier Greencore, CD&R has reportedly offered to invest in the Irish food supplier. The value of the potential deal was undisclosed and neither CD&R nor Greencore could be reached for comment. However, the Sunday Times reported that the two were in “detailed discussions” surrounding a deal.
Former Tesco chief executive Sir Terry Leahy joined CD&R as an advisor in May this year after a 14 year stint at the supermarket chain. Leahy oversaw Tesco’s expansion into new markets including Thailand, Korea and China.
Greencore supplies ready-made meals and sandwiches to major supermarket chains including Tesco. It has also reportedly just completed a £113 million (€131 million; $180 million) acquisition of a British rival, sandwich and pudding-maker Uniq.
The business reported half year revenues in 2011 of €442 million and a market capitalisation of €285 million as of Monday morning. In 2010, it had turnover in excess of €850 million. It is mostly located in the UK, but has sites in the US and Ireland as well, according to the company’s website.
CD&R has experience in the food sector, having invested in various other food suppliers such as Brakes, a food supplier to the UK and France in 2002, and US Foods, an American food service distributor in 2007, according to its website.
In August, the firm also made a $195 million equity investment for a 60 percent stake in Hussmann International, a refrigeration systems and display company, continuing to underline its interest in the sector.