Permira funds sell Iglo Group to Nomad for €2.6 billion
The successful partnership with Iglo Group highlights Permira’s expertise in helping iconic consumer brands around the world to grow and realise their international ambitions.
Permira announced that a company backed by Permira Europe III has entered into a definitive agreement to sell Iglo Foods Holdings Limited (“Iglo Group”, or the “Group”), Europe’s largest frozen food business, to Nomad Holdings Limited (“Nomad”) for €2.6 billion. Nomad is a publicly-listed acquisition company and, as part of the transaction, the Permira Funds will retain a 9% stake in Nomad Foods Limited upon closing. The transaction is subject to customary closing conditions and is expected to complete in the second quarter of 2015.
Under the Permira Funds’ ownership, Iglo Group has established itself as Europe’s largest frozen food business with iconic brands including Birds Eye in the UK and Ireland, Iglo in Germany and other continental European markets, and Findus in Italy. This was achieved by investing heavily into product innovation, improving its brand marketing and taking advantage of consolidation opportunities in the European frozen food market.
In October 2010, the Permira Funds provided additional investment to enable the acquisition of Findus Italy adding significant scale to the Group. As a result, Iglo Group has achieved leadership in seven out of the 12 countries in which it operates, including the UK, Germany and Italy, which account for c. 85% of sales. The company is also in a strong financial position today having recently reported revenues of €1.5 billion and EBITDA of €306 million for FY2014.
The Iglo and Birds Eye brands were acquired from Unilever in August 2006 to form the Iglo Group and transform a declining unit of a conglomerate into Europe’s largest frozen food platform with reinvigorated and sustainable top-line growth.
The successful partnership with Iglo Group highlights Permira’s expertise in helping iconic consumer brands around the world to grow and realise their international ambitions. The Permira Funds have a long track record of successfully investing in consumer brands around the world including Dr. Martens, Atrium, Hugo Boss, Valentino, Galaxy Entertainment, Akindo Sushiro and New Look. Since 1997, the Funds have invested €6.7bn in 24 consumer companies and achieved attractive returns for investors.
Centerview Partners acted as exclusive financial adviser to the Permira funds and Skadden, Arps, Slate, Meagher & Flom LLP and Clifford Chance acted as legal advisers. Barclays and UBS Investment Bank acted as financial advisers and Greenberg Traurig acted as legal adviser to Nomad on the transaction.
Permira is an international private equity firm. The Permira Funds, raised from pension Funds and other institutions, make long-term investments in companies with the ambition of transforming their performance and driving sustainable growth.