Lion Capital to buy French frozen foods firm Picard for €1.5 billion

Lion Capital yesterday decided to buy Picard Surgeles from rival BC Partners for €1.5 billion ($1.9 billion), making it the third time that the French frozen foods retailer's ownership change between private equity firms.

Both private equity firms did not disclose the financial terms of the transaction, but various media reports have suggested that Picard Surgeles is valued at an estimated €1.5 billion.

Consumer sector focussed Lion Capital had to ward off strong competition from rival buyout firms like Clayton Dubilier & Rice, Bain Capital, Cinven Limited, CVC Capital Partners and Eurazeo.

UK-based BC Partners had acquired Picard for €1.3 billion in 2004 from Candover Partners, which in turn had bought it from French supermarket group Carrefour S A in 2001.

Picard sells a very wide range of self-branded frozen foods ranging from starters to desserts to prepared meals through its 820 stores in France. For 3009 fiscal, Picard generated sales of over €1.1 billion.

"Picard has established an enviable position within the frozen category by delivering consumers high quality food products with superior taste and nutritional characteristics at attractive price points," said Lyndon Lea, Partner of Lion Capital.

"Throughout the economic cycle, the company has driven consistently strong financial performance by offering a high quality and convenient alternative to fresh food, underpinned by a strong emphasis on product innovation," he added.

''Despite a hard consumer environment in 2009, Picard continued to gain market share and has further significant growth opportunities in France and in Europe,'' said André François-Poncet, managing partner of BC Partners. ''We trust that Lion Capital will be a good partner for Picard in the future.''