Iglo breaded fish sticks. (Photo Credit: Iglo)

Nomad Holdings purchases Iglo Food for EUR 2.6 billion

As part of a build-up strategy, Nomad Holdings Limited has agreed to acquire Iglo Foods Holdings Limited, Europe's leading frozen food company, from a company backed by the Permira funds.

Firm’s sources informed that this purchase amounted to approximately EUR 2.6 billion, subject to customary closing conditions and that Nomad intends to change its name to Nomad Foods Limited.

“In addition to supporting Iglo Group's organic growth initiatives, Nomad will pursue strategic and complementary acquisitions intended to enhance its consumer offering and deepen its market leadership,” pointed out Noam Gottesman, who is the Founder and CEO of investment firm Toms Capital and Co-Founder of GLG Partners, and Martin E. Franklin, who is the Founder and Executive Chairman of Jarden Corporation.

For his part, Iglo Group's Chief Executive Officer, Elio Leoni Sceti welcomed the transaction and remarked: "This is a significant stepping stone for Iglo Group as we continue to revitalize consumer interest in frozen food with meaningful innovation for every day, every meal and everybody."

Headquartered in the UK, Iglo Group is the leading frozen food company in Europe with sales across 12 countries and a specific focus on markets in the United Kingdom, Germany, and Italy, where the Company maintains manufacturing operations.

The Company's brands, which enjoy a leading market share in each of their respective regions, include Birds Eye in the UK and Ireland, Iglo in Germany, Austria, the Netherlands, and other continental European markets, and Findus in Italy.

The Group informed that in 2014, its net sales and adjusted EBITDA amounted to EUR 1.5 billion and EUR 306 million, respectively. The Company's gross margin expanded to 35.4 per cent and its adjusted EBITDA margin was 20.4 per cent.

“The group's scale, cash-generative profile, and experienced management team make it an ideal foundation for us to build up a world-class, global consumer foods company through a prudent M&A strategy," Gottesman concluded.

Meanwhile, Martin E. Franklin, Nomad's Co-Founder, stated: "During this process, it was abundantly clear that Iglo Group was a natural fit from both a strategic and a financial standpoint. This is a well-run business that has cemented itself as a leader in an attractive, yet highly fragmented sector, which paves the way for both organic and inorganic growth opportunities."

The transaction is expected to be funded through a combination of Nomad's cash on hand, equity and proceeds from a private placement of approximately USD 750 million at USD 10.50 per ordinary share to a limited group of institutional investors and the expected early exercise of Nomad's existing warrants, as well as a portion of Iglo Group's existing debt.

[email protected]
www.seafood.media

Address:	5 New Square - Freepost ADM3939
City:	Feltham
State/ZIP:	Middlesex, England (TW14 8HA)
Country:	United Kingdom
Phone:	+44 208 918 3200
E-Mail:	[email protected]
More about:

 

 

 

 

 

Print