FDBusiness.com

Having recently completed the €2.6 billion purchase of Iglo Group, Europe’s leading frozen food company, Nomad Foods is acquiring Findus Group’s continental European businesses in Sweden, Norway, Finland, Denmark, France, Spain and Belgium for £500 million. These operations include the intellectual property and commercialisation rights to the Findus, Lutosa, and La Cocinera brands in the respective markets. The remaining part of the Findus Group, including Young’s Seafood in the UK, is not part of the deal.

The operations being acquired include approximately 1,500 employees and six manufacturing facilities in Norway, Sweden, France, and Spain. Annual revenues are approximately €600 million with an adjusted EBITDA margin of approximately 11%. The acquisition is expected to be immediately accretive to Nomad’s earnings with approximately €25 million to €30 million of annual synergies targeted over the next three years.

Stéfan Descheemaeker.

Through its Iglo Group business, Nomad currently operates Findus in Italy and this transaction creates a pan-European food business and further reunites the brand across the continent. This will enable Findus to move forward as a more unified brand and will support efforts to drive innovation, introduce new meal options, and conduct marketing initiatives aimed at bringing more consumers across Europe to the frozen foods aisles. The geographic footprint of the operations included in this transaction complements Nomad’s reach and, following closing of the transaction, Nomad will have extended its footprint throughout Europe. Nomad expects to benefit from a combined operating model that facilitates collaboration and innovation across the businesses.

Stefan Descheemaeker, chief executive of Nomad, comments: “This transaction is in line with our growth strategy, an exciting addition to the Nomad portfolio, and a significant milestone in reaching our goal of building a global consumer foods company. While the operations we are acquiring are strong, attractive assets on their own, combining them with our existing businesses creates a unique value proposition and unlocks new growth opportunities. The Findus name is well-loved and iconic across the European continent, and having the businesses under one umbrella brings together two talented, world-class teams, enabling us to share best practices and to elevate and evolve the brand as we bring an even greater choice of products to consumers.”