European frozen foods company Nomad Foods Limited has finalized its acquisition of Findus Switzerland from Froneri International Ltd. and intellectual property from an affiliate of Nestlé S.A. for a purchase price of approximately EUR 110 million (USD 135 million).
Findus is a leading frozen food brand in Switzerland with a portfolio of value-added frozen products across categories including fish, vegetables, and ready meals.
Confirming the closure of the deal, which was first announced in November 2020, Feltham, United Kingdom-based Nomad said the purchase expands its geographic reach into Switzerland, calling it “a new and sizable market.” The transaction also unifies its ownership of the Findus brand across Europe.
“The acquisition of Findus Switzerland reinforces Nomad’s position as Europe’s leading frozen food company and demonstrates our ability to create shareholder value through a combination of organic growth and the accretive deployment of capital,” Nomad Foods Chief Executive Officer Stéfan Descheemaeker said. “We are eager to welcome the Findus Switzerland team into our organization and look forward to replicating the growth model that has delivered strong performance across our existing portfolio.”
Goldman Sachs International acted as financial advisor and Norton Rose Fulbright and Lenz & Staehelin acted as legal advisors to Nomad on the transaction.
In addition to Findus, Nomad’s portfolio of brands includes Birds Eye, Iglo, Aunt Bessie's, and Goodfella's.
Last month, the company raised its 2020 guidance alongside significant share repurchasing activities. In a business update, it said that organic revenue growth had increased 10 percent through the first two months of the fourth quarter and that its expectation was to remain above historical levels during the month of December to achieve 2020 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately EUR 465 million (USD 570.9 million).
It had also repurchased over USD 95 million (EUR 77.4 million) of its ordinary shares in the quarter, resulting in excess of USD 195 million (EUR 158.9 million) of cumulative share repurchases for the year-to-date under its USD 300 million (EUR 244.3 million) share repurchase plan authorized in March 2020.
This activity was in addition to the successful tender offer for USD 461 million (EUR 375.4 million) of its ordinary shares completed in September 2020.
Photo courtesy of Nomad Foods
