Nomad Holdings to buy Europe's biggest frozen foods company Iglo Foods for $2.79 bn

Nomad Holdings Ltd today struck a deal to buy Europe's biggest frozen foods company Iglo Foods Holdings Ltd from private equity firm Permira, for about €2.6 billion ($2.79 billion).

Permira, which had acquired Iglo, the maker of Birds Eye fish fingers in 2006 from Unilever for £1.4 billion, will retain a 9-per cent stake.

Nomad expects to fund the transaction through a combination of cash on hand, equity, and the proceeds from a private placement to raise about $750 million.

Permira, which had made a 2.4 times return on its original investment, expanded Iglo in 2010 by buying Findus Italy for £669 million as well as launching new products in several countries

Permira had in March 2012 appointed Credit Suisse to start an auction process and had initially attracted interest from a host of buy-out rivals, such as Bain Capital, BC Partners and PAI Partners, as well as New Jersey-based Pinnacle Foods Finance, which owns the US rights to the Birds Eye Foods brand. (See: Blackstone, BC Partners team up to bid for Iglo Group)

Feltham, UK-based Iglo is the frozen foods market leader in Europe both in terms of sales and brand recognition. It produces branded frozen food products in 11 countries and has recently entered central and Eastern Europe including Russia and Turkey.

Its core brands are Birds Eye, Findus and Iglo frozen foods, which are the top 5 market leading positions in nine countries.

Birds Eye is the market leader in frozen food and the only brand with a significant presence in the major food categories such as fish, vegetables, poultry and ready meals.

Iglo claims that one in every five pounds spent on frozen food in the UK is spent on a Birds Eye product, and its famous Fish Fingers are eaten every 20 seconds.

The company also produces fruit juice concentrates, frozen vegetables, fish, chicken, red meat, pies, meals, potatoes, and desserts. The company also manufactures food including Salti in Padella and Sofficini.

Its manufacturing sites are located in Bremerhaven and Reken in Germany, Lowestoft in the UK and Cisterna in Italy.

Nomad Holdings was founded last year by founder of investment firm Toms Capital and co-founder of hedge fund GLG Partners Noam Gottesman and Martin Franklin, founder and executive chairman of Jarden Corp.

Nomad plans to change Iglo's name to Nomad Foods Ltd, with Gottesman and Franklin as non-executive chairmen and Iglo's CEO Elio Sceti a non-executive director.