FDBusiness.com

Private equity group Permira is selling Iglo Foods Holdings, Europe’s largest frozen food business, to Nomad Holdings for €2.6 billion. Nomad is a publicly-listed acquisition company and upon closing of the Iglo deal will change its name to Nomad Foods. As part of the transaction, Permira will retain a 9% stake in Nomad Foods upon closing. The deal is subject to customary closing conditions and is expected to complete in the second quarter of 2015.

Under the Permira Funds’ ownership, Iglo Group has established itself as Europe’s largest frozen food business with iconic brands including Birds Eye in the UK and Ireland, Iglo in Germany and other continental European markets, and Findus in Italy. This was achieved by investing heavily into product innovation, improving its brand marketing and taking advantage of consolidation opportunities in the European frozen food market. In October 2010, Permira provided additional investment to enable the acquisition of Findus Italy adding significant scale to Iglo Group. As a result, Iglo Group has achieved leadership in seven out of the 12 countries in which it operates, including the UK, Germany and Italy, which account for about 85% of sales. The company is also in a strong financial position today having recently reported revenues of €1.5 billion and EBITDA of €306 million for the 2014 financial year.

Cheryl Potter, head of Permira’s global consumer team, says: “Iglo Group is a great example of how we partner with leading consumer brands and support them, including during tougher economic times, to foster innovation and build a platform for sustainable growth. Iglo Group today is the most trusted brand in European frozen food and the fact that it will be the foundational investment in Nomad’s portfolio of market-leading, niche consumer foods companies speaks volumes to the strength of the company, its powerful brands and exciting growth prospects. We are pleased that the Permira funds will remain invested alongside Nomad as the company embarks on the next phase of its journey.”

It has also been announced that Iglo’s Group’s CEO, Elio Leoni Sceti, is to leave at the end of June to take up another CEO position in July but will continue as a Non-Executive Director on Nomad’s board. Elio Leoni Sceti joined the company in May 2013 and has led a significant transformation, focusing the group’s strategy on creating meaningful innovation for every day, every meal and everybody and developing insightful connections with consumers. Under his leadership, in addition to the group’s commitment to responsible sourcing, Iglo Group has also continued to focus on sustainability. Through its Forever Food Together initiative launched in 2014, Iglo Group has been working to educate consumers on the unique advantages of freezing and frozen food, and how it helps to tackle the food waste issue, both in the supply chain and in the home, helping consumers to reduce food waste.

Noam Gottesman, Nomad’s Co-Founder, comments: “What people eat and how and when they eat are constantly evolving, making food one of the most resilient yet dynamic categories in the consumer sector. Iglo Group’s strong brands are clear market leaders in frozen food, and the Company’s innovative and customer-centric approach will continue to drive organic growth and superior returns within the industry. 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.”

“We took a highly disciplined approach to evaluating opportunities for Nomad’s initial investment,” adds Martin E. Franklin, Nomad’s Co-Founder. “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.”