The Strategist

Nomad acquires Iglo and in talks with Findus

06/05/2015 - 02:26

Nomad acquires Iglo and in talks with Findus
Nomad Holdings Limited has acquired European frozen food manufacturer Iglo Food Holdings for 2.6 billion euros.
The transaction has resulted in Nomad becoming an exclusive food marketing company under the new name of Nomad Food Limited. The company made the deal in a combination of cash and private placements of about $795 million to institutional investors, equity and the early use of outstanding warrants of the company. Pershing Square, an investor firm backed by Bill Ackman has also made a 21.7% stake in Nomad Foods. Meanwhile, Permira funds who owned Iglo earlier reinvested 133.5 million EUR into Nomad and the firm owns about 9% of Nomad Foods Limited.
The merged new company will function under Stefan Descheemaeker as its new CEO and Paul Kenyon as its CFO. The company’s co-chairman and co-founder Noamm Gottesman noted that the acquisition would pave the way for establishing the new company’s dominance in the frozen food market in Europe. He also added that the company is looking into more mergers and acquisitions like the addition of Iglo group.
The acquisition comes as a good move for Iglo as well which could repay around 490 million EUR from its existing debts. The company has repriced its loans and got to reduce the interest rates after the acquisition.
Currently, Nomad is also in talks with Findus Group, another major Europe-based frozen foods company to acquire it. Though they are early talks and have not resulted in any concrete plans, if finalized, the deal will give near monopoly for Nomad in the European frozen foods market. Iglo currently owns the Italian part of Findus’ business as well as the brand called Birds’ eye.

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