Feltham, England-based Nomad Foods Limited announced on Monday, 11 January, it has entered into exclusive negotiations to acquire Fortenova Group’s Frozen Food Business Group.
Zagreb, Croatia-based Fortenova Group operates primarily in the Balkans, with reach across Southeastern Europe. Its portfolio of products includes fish, fruits and vegetables, ready-to-eat meals, pastry, and ice cream. The company recorded EUR 5.5 billion (USD 6.7 million) in sales in 2019, but has suffered from illiquidity and debt issues. Its frozen food business includes ownership and management of the Ledo and Frikom frozen brands.
"Due diligence process for the frozen food business, in which there were several parties involved, has ended by our acceptance to continue negotiations exclusively with Nomad Foods,” Fortenova CEO Fabris Perusko told Reuters.
Perusko said he expected the signing of a sale agreement at the end of the first quarter, with the completion of the transaction coming over the summer, he said.
Nomad Foods is the largest frozen foods firm in Europe, with a portfolio of brands that includes Birds Eye, Findus, iglo, Aunt Bessie's, and Goodfella's. The company, which is traded publicly on the New York Stock Exchange under the symbol NOMD, notched EUR 2.3 billion (USD 2.8 billion) in total sales in 2019.
“This prospective transaction is aligned with management’s strategy of complementing strong organic growth in the base business with the acquisition of market leading frozen food brands across Europe,” Nomad Foods said in a press release. “The acquisition of FFBG would extend Nomad’s portfolio into new and developing European markets while also creating a beachhead for potential future consolidation within Central and Eastern Europe.”
Nomad, which formalized its acquisition of Findus Switzerland earlier this month, warned the transaction is not a done deal.
“These discussions are preliminary and there can be no assurance that a transaction will be completed,” it said. “The company does not intend to provide further updates unless there is a definitive outcome to the discussions.”
Photo courtesy of Fortenova Group
