Acquisition vehicle Nomad Holdings Ltd has said that it’s in early talks to buy frozen-food producer Findus Group Ltd.
The discussions are focused on Findus’s Continental European business and its brand, Nomad said in a recent statement. A deal would follow London-based Nomad’s agreement in April to purchase Iglo Foods Holdings Ltd, the maker of Birds Eye frozen vegetables, for €2.6 billion ($2.9 billion).
A combination of Iglo and Findus would create a frozen-food giant with products spanning fish fingers, peas and microwavable lasagne. Iglo is the world’s second-largest frozen-food manufacturer, with 3.3 per cent of the market in 2014, according to data from Euromonitor International.
Nomad, which is backed by billionaire Bill Ackman, said that the talks are at a preliminary stage, and there is no certainty that a deal will be reached. Findus’s shareholders include JPMorgan Chase & Co., Lion Capital and Highbridge Capital.
Nomad said that a trading suspension that took effect following the announcement of the Iglo takeover remains in place. The company is seeking a readmission, as well as a listing on the New York Stock Exchange.
Deal Funding
Nomad raised $485 million from an initial public offering in April 2014 to fund acquisitions in the food and beverage industry, data compiled by Bloomberg shows. At the time of the Iglo acquisition, Nomad said that it would raise about $750 million more from a private placement to institutional investors.
Pershing Square, the hedge fund controlled by Ackman, recently disclosed that it owns a 21.7-per-cent stake in Nomad.
Buying Feltham, England-based Iglo gave Nomad a business with sales of about €1.5 billion last year and earnings before interest, taxes, depreciation and amortisation of €306 million.
Bloomberg News, edited by ESM
