Northern Foods and Greencore to merge and become 'Essenta Foods'

In a statement the Boards of Greencore and Northern Foods said they believe that the deal, which should be complete by the second quarter of 2011, will: * combine two highly complementary businesses to create an operator with an enhanced presence in the attractive private label convenience foods category with significant branded positions in Biscuits (Fox's) and Frozen Pizzas (Goodfella's); * provide the ability to drive cost efficiencies and combine complementary customer bases and provide opportunities to deepen relationships with key customers; and * provide a stronger credit profile, which will help to ensure greater financial and strategic flexibility in future. Bringing the two businesses together will save an estimated £40 million, according to the statement. Patrick Coveney will be the Chief Executive Officer and Simon Herrick will be the Chief Financial Officer. The Board of Directors of Essenta Foods will be drawn equally from the Boards of Greencore and Northern Foods. Anthony Hobson, chairman of Northern Foods, said the transition will be smooth for customers and employees: "We have a great executive leadership team whose priority is to ensure that we work closely with our employees, our customers and our shareholders to integrate effectively and capture the huge opportunities available." Patrick Coveney, CEO of Greencore, added: "Essenta Foods presents a compelling opportunity for all stakeholders. It creates a substantial chilled prepared food company in fast growing categories in the UK which is enhanced by strong branded positions in biscuits and frozen food."