Findus Italy is the only European frozen goods business still owned by Unilever. (Photo: Stock File)

Unilever seeks buyer for Italian subsidiary

UNITED KINGDOM
Wednesday, April 28, 2010, 16:30 (GMT + 9)

Anglo-Dutch consumer goods group Unilever PLC announced on Monday it is seeking a buyer for its Italian frozen foods company Findus to increase overall growth in Italy for an estimated over EUR 600 million.

"Frozen foods is no longer a core product area for Unilever and any sale allow us to increase investments in brands which will deliver higher levels of growth," said Unilever Chairman James Hill.

Findus Italy has annual sales of EUR 450 million. The company has a plant in Cisterna.

Unilever hired Goldman Sachs Group Inc on 15 April to sell its Italian frozen foods business. The sale is anticipated to attract interest from several buyout firms such as private equity house Permira, which owns Birds Eye Iglo.

Private equity rival Lion Capital, which runs Findus Group, would also bid and has instructed advisers ahead of the sale.

Lion Capital already owns Findus Group, parent of Young's, Findus and Seafood Co. BC Partners - owner of Picard Surgelés - and PAI Partners are set to consider the offer too, Reuters reports.

Unilever, which makes Knorr soups and Hellmann's mayonnaise, said frozen food is no longer a key product in Europe after it sold most of its Birds Eye Iglo business for EUR 1.7 billion in 2006.

Lion Capital bought the Findus Group from CapVest in 2008, while Findus Italy remained in the power of Unilever.

Findus Italy is now Unilever’s only European frozen foods business after the giant food group sold off Birds Eye and Iglo.

At the time, former chief executive Patrick Cescau kept the Italian business because he wanted to incorporate it into Unilever’s Italian ice cream business, which includes Cornetto, Viennetta and Solero.

Since taking over in 2008, current chief Paul Polman has wanted to sell the business. He has been looking to boost Unilever’s portfolio and focus on driving volume growth rather than cutting costs.

"Any sale would enable us to focus on our other categories, increasing investment in brands which will deliver higher levels of growth and shareholder value," Hill said in a statement.

Unilever's Findus markets frozen traditional Italian meals such as Carbonara and Bolognese plus fish and vegetables products.

Related article:

- Unilever may unload frozen food business

By Natalia Real
[email protected]
www.seafood.media

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