Greencore acquisitions

Greencore has bought confectionery producer the Ministry of Cake and Danone's mineral water facility for a total cost of €15 million.

The convenience food company, which earlier this week announced the retirement of chief executive David Dilger, said the two UK-based businesses would strengthen its position in both the food service and convenience store sectors.

The Ministry of Cake supplies frozen cakes, cheesecakes and pastries to the food service sector and has a turnover of £16 million, while Danone's water facility in Blaen Twyni produces natural and flavoured spring waters from the Twyni spring in the Brecon Beacons national park in Wales.

Patrick Coveney, Greencore's chief financial officer, who is scheduled to take over as chief executive at the end of March, said the purchases would help Greencore diversify its business.

"Our convenience foods division continues to compete in attractive product categories, growing at levels above the total food market," Mr Coveney said.

The Ministry of Cake will complement Greencore's existing cake operation in Hull, which supplies to the retail sector.

Greencore also already has a "thriving" water business, owning a facility at the Campsie Springs in Lennoxtown, Scotland.

Consumption of bottled water in the UK is still only about a third of the level drunk in continental Europe, according to the company, which believes the category has significant growth potential.