PE firm Permira puts Iglo, Europe's largest frozen food firm, on the block

Iglo Group, Europe's largest frozen food company, has been put up for sale by its owners, private equity firm Permira with a price tag of up to £2.5 billion ($3.96 billion), the Financial Times yesterday reported, citing people close to the situation.

Permira had acquired Iglo Group in 2006 from Unilever for £1.4 billion, and expanded the company in 2010 by buying Findus Italy for £669 million as well as launching new products in several countries.

Permira has appointed Credit Suisse to start an auction process, which may attract interest from a host of buy-out rivals, such as Blackstone, BC Partners and Cinven, said the paper.

Swiss food and beverage giant Nestle, Norwegian consumer goods group Orkla and ready-meals entrepreneur Ranjit Singh Boparan, who acquired Northern Foods in 2011, may also be potential bidders, according to several media reports.

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 currently 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.