Nomad snaps up European frozen food business for EUR 615 million
United Kingdom-headquartered frozen foods company Nomad Foods Ltd. has entered into an agreement to acquire Fortenova Group’s Frozen Food Business Group (FFBG) for aggregate consideration of approximately EUR 615 million (USD 725 million) on a debt-free, cash-free basis.
Announcing the move, the Birds Eye, Findus, Iglo, Aunt Bessie's, and Goodfella's brand owner said it was interested in FFBG due to its position as a leading European frozen food portfolio that operates in attractive markets that are new to Nomad – including Croatia, Serbia, Bosnia and Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia, and Montenegro.
It added that FFBG’s two anchor brands – Ledo and Frikom – have unparalleled consumer awareness and top market share in many of the markets, and offer a broad range of frozen food products including fish, fruits, vegetables, ready-to-eat meals, pastry, and ice cream.
Nomad Foods CEO Stéfan Descheemaeker said the acquisition of FFBG reinforces Nomad’s European frozen food leadership, while strategically expanding its portfolio into attractive new markets.
“Similar to Nomad, FFBG is singularly focused on frozen food, a fantastic category that is aligned with consumer trends, including convenience and sustainability,” Descheemaeker said. “We plan to leverage our combined pan-European scale, commercial expertise, and passion for frozen food while harnessing the unique local characteristics and traditions of FFBG’s brands.”
Nomad Foods Co-Chairman and Founder Noam Gottesman said the acquisition is consistent with the group’s growth strategy and builds on a five-year track record of shareholder value creation.
“This transaction provides a natural extension to our existing business and creates a new platform for future expansion within Central and Eastern Europe. It also introduces us to ice cream, an exciting new category which opens new potential avenues for growth,” Gottesman said. “Following the acquisition, our annual revenue will approach EUR 3 billion (USD 3.5 billion), nearly doubling the revenue base of Iglo Group, our initial anchor acquisition in 2015. We are proud of what we have accomplished so far, and we believe there is much more to come. We look forward to welcoming the FFBG team into the Nomad family.”
Morgan Stanley acted as financial advisor and Norton Rose Fulbright, Divjak Topic Bahtijarevic and Krka Law Firm, and BDK Advokati are acting as legal advisors to Nomad Foods on the transaction.