Yorkshire set to lose iconic brand name as food firms merge

YORKSHIRE is to lose another historic name after Northern Foods revealed plans to merge with Ireland's Greencore creating a £1.7bn group called Essenta Foods.

The new business will be based in Dublin to cut tax, but yesterday said it would retain a "significant presence" in Yorkshire.

Essenta's new management said it will be a "merger of equals" but industry sources believe Greencore will be the "lead player".

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Northern's former chairman of 16 years, Lord Haskins, said it was a "sad end" to the company.

Cost cuts or 'synergies' of 40m are expected from the deal but analysts do not expect the group to close factories as there is little overlap in manufacturing.

The City welcomed the deal, with shares in both companies soaring by more than 24 per

cent.

Essenta will be headed by Greencore's chief executive Patrick Coveney, with Northern's finance director Simon Herrick retaining the finance role.

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Northern's chairman Tony Hobson will be non-executive chairman of Essenta, but chief executive Stefan Barden goes.

Northern, which makes Goodfella's pizza and Fox's biscuits, employs about 2,500 people in Yorkshire.

Greencore is the UK's biggest sandwich-maker and specialises in chilled food.

It has about 2,400 staff in Yorkshire at plants in Hull, Selby, Leeds and Sheffield.

In total Essenta will have about 17,000 employees.

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Mr Coveney said while there would be some job losses as duplication is stripped out, it would not be a "huge number".

"We envisage having a very significant operating centre in Yorkshire," he said.

Mr Herrick insisted the merger will create a stronger group, more capable of growth.

Northern Foods traces its roots back to 1880, with a milk business in Hull.