British Virgin Islands-based packaged food company Nomad Foods has completed the acquisition of frozen food brand Findus Sverige AB for £500m from LionGem Sweden 1 AB.
The acquisition includes Findus' European businesses in Sweden, Norway, Finland, Denmark, France, Spain, and Belgium, along with intellectual properties and commercialization rights of Findus, Lutosa, and La Cocinera brands in their individual markets.
Findus' 1,500 employees and six manufacturing facilities are also part of the acquisition. With this acquisition, Nomad Foods intends to become the largest frozen foods company in Western Europe with a leading market share in nine countries.
The acquisition consolidates Nomad's existing Findus-branded business in Italy with the brand operating in other geographical areas, thus achieving a commanding position in the European region.
This deal brings Nomad's employee count to 4,300 people in 15 countries, operating 10 factories with an extensive product portfolio. The expansive scale is intended to help the company execute innovative strategies by considering consumer opinion to offer tailor-made products for local markets.
Nomad CEO Stéfan Descheemaeker said: "The complementary nature of our footprint and the strength of our combined brands across Europe significantly enhance Nomad's scale and competitive offering. The Birdseye, Iglo, and Findus brands have played key roles in defining the frozen food category over the past decades, and together will be better positioned to continue bringing fresh and 'better-for-you' meal options to consumers across Europe."
For the deal, Nomad offered cash consideration worth £400m through a combination of cash and a senior term loan. LionGem Sweden 1 AB has also received around 8.4 million ordinary shares in the capital of Nomad, which represents around 5% of the issued ordinary share capital of Nomad.
In August, Nomad Foods was reported to have begun seeking acquisition opportunities in the US. It was reported that the company was considering acquisitions in the frozen food industry and was seeking to focus on neglected brands in the sector. It had been eyeing to acquire a company with a strong management team, which would further help it in making more acquisitions.
Image: Nomad expands its frozen foods portfolio with acquisition. Photo: Courtesy of rakratchada torsap/FreeDigitalPhotos.net.
