August 13, 2015

Nomad Foods Ltd. confirmed on August 13 that it is buying the European operations of Findus Group for £500 million (US$750 million) in cash and shares, entering into an option agreement to buy Findus Sverige AB and its subsidiaries from its backers, Highbridge Principal Strategies, Lion Capital LLP and Sankaty Advisors. This deal marks the second acquisition for Nomad within the year as the group works to establish itself as a European frozen good giant.

The deal will include Findus’ business in Sweden, Norway, Finland, Denmark, France, Spain, and Belgium including all intellectual and commercialization rights to the Findus, Lutosa, and La Cocinera bands in those markets. The remainder of Findus, including Young’s Seafood Ltd. in the UK, will remain under its current ownership.

Nomad expects the acquisition to provide an immediate increase in earnings once the deal is closed and between €25 million and €30 million in cost savings within the next three years.

Nomad, which was formed in early 2014, and is 20% owned by Pershing Square Capital Management LP, closed on a deal in June to buy Iglo Foods, which includes the Birds Eye brand. The company stated that the €2.6 billion deal was to act as an ‘anchor’ investment as it looked to make additional acquisitions in the frozen food category as well as others, with an eye toward the U.S. market.

Findus reported earnings before interest, taxes, depreciation, and amortization of £39.2 million at the end of the first quarter of this year, representing an increase in earnings of 5.4% over the same period a year before.

The boutique investment bank, Centerview Partners, served as the financial adviser on both the Iglo and Findus deals.