Having just finalized a deal to purchase Feltham, England-based Iglo Foods for EUR 2.6 billion ($2.9 billion) from the Permira private equity concern, Nomad Holdings Ltd. is now on the prowl for the Findus Group. The prospective buyer announced on June 2 that it is engaged in “exclusive early stage discussions” to acquire the continental Europe business of Findus and its brand.”
However, there “can be no certainty that these discussions will result in a transaction,” it stated in a notice issued to the London Stock Exchange.
Meanwhile, the launch of Nomad Foods stock (LON:NHL) on June 23 saw shares skyrocket by more than 70% as prices reportedly zoomed from 9.4p to 21.25p in mid-morning trading.
The Findus Group, headquartered in the United Kingdom, is regarded as second only to Iglo in Europe’s retail frozen food distribution sector. Ranked as the No. 1 branded player in Sweden, Norway, Finland and France, its product lines run the gamut from vegetables and side dishes to fish, seafood, ready meals and soups.
Owned by private equity interests including JPMorgan Chase & Co., Highbridge Capital and Lion Capital, the company employs more than 6,000 people. From Findus Finest French Green Beans, Sausage & Mash and Crispy Pancakes, to Young’s Seafood brand Homestyle Breaded Cod Fillets and Jumbo Whole Shrimp in the UK, it produced 350,000 tons of products at manufacturing plants in five countries last year. Revenues amounted to approximately EUR 1.5 billion.
As the Nomad Holdings statement regarding discussions specifies continental Europe business and the Findus brand, it is believed that the talks do not include the UK assets of Findus. Speculation has it that the Young’s Seafood operations will likely be sold off separately.
Nomad Holdings Ltd., headquartered in the British Virgin Islands, was founded in April of 2014 by entrepreneurs Noam Gottesman and Martin Franklin. It reportedly raised $485 million from an initial public offering floated especially to buy food companies. Pershing Square Capital Management, a New York-based hedge fund headed by billionaire investor William A. Ackman, owns 21.7% of Nomad.
With the Iglo acquisition, Nomad claims perhaps as much as 10% of the Europe’s retail frozen food market, a share estimated to be twice the size of Findus’ stake. Interestingly, the Iglo purchase included the Findus brand in Italy, but nowhere else. The Iglo deal included 100% of the Birds Eye business. While Iglo is an iconic frozen food label in Continental Europe, Birds Eye has long reigned supreme as the leading retail frozen brand in Britain.
