FDBusiness.com

UK-based Nomad Foods, Europe’s largest frozen food producer, has agreed to acquire the Goodfella’s Pizza business of Green Isle Foods from Boparan Holdings (incorporating 2 Sisters Food Group) for approximately €225 million on a debt free, cash free basis. Green Isle Foods is Ireland’s largest frozen food producer and is headquartered in Naas, County Kildare.

The transaction includes the sale of brands such as Goodfella’s and San Marco, as well as the ongoing supply of private label frozen pizza contracts to UK and Irish retailers. The Goodfella’s brand, which accounts for the majority of Goodfella’s Pizza revenues, was founded in 1993 and holds number one and number two market share positions within the frozen pizza category in Ireland and the UK, respectively. The acquisition also includes two frozen pizza manufacturing facilities which provide a foundation for future expansion in the category.

Stefan Descheemaeker, chief executive of Nomad Foods.

The frozen pastry, frozen vegetable and frozen fish parts of Green Isle Foods businesses, which include household brands such as UpperCrust, Green Isle and Donegal Catch will remain part of 2 Sisters Food Group. The finalisation of the transaction is subject to customary closing conditions, which are expected to be completed in early 2018.

Nomad Foods produces, markets and distributes brands in 17 countries and has the leading market share in Western Europe. The company’s portfolio of leading frozen food brands includes Birds Eye, Iglo and Findus.

Stefan Descheemaeker, chief executive of Nomad Foods, comments: “The acquisition of Goodfella’s Pizza comes at an exciting time for our company. 2017 was a banner year as investments in our core portfolio translated into strong organic revenue growth. We exited the year on a high note, with our updated guidance reflecting better than expected top and bottom line performance during the fourth quarter. Goodfella’s Pizza creates a new and exciting growth avenue into frozen pizza, a strategic category that is both sizable and complementary. We have a strong foundation in place and are well positioned to create shareholder value as we apply our proven toolkit of capabilities to Goodfella’s Pizza and further develop our portfolio of iconic and market leading brands. We are excited to welcome the Goodfella’s Pizza employees to the Nomad family.”

Ranjit Singh Boparan, chief executive of 2 Sisters Food Group, says: “We are pleased to announce this transaction of our Frozen Pizza businesses. We have had approaches over the past couple of years for these businesses, and we have been talking to several interested parties during this period. But a sale had to be at the right time, with the right buyer, and it had to be a deal that fitted with our long-term strategy. This deal represents our first major step to transform 2 Sisters and build a better business.”

Ranjit Singh Boparan adds: “The net proceeds from the sale are intended to be used to repay debt and to invest in the Group’s core businesses.The Green Isle and Donegal Catch brands, and our frozen pastry business remain within our business.”