Nomad Foods eyeing acquisitions in US

Frozen foods company Nomad Foods is considering the acquisition of neglected frozen food brands in the US at bargain prices and redeveloping them, according to CEO Stefan Descheemaeker.

Speaking to Reuters, Descheemaeker said Nomad generates most of its revenue from Europe, and is interested in acquiring a company with a strong management team that would help in carrying out future acquisitions.

The move is the latest in a series of acquisitions by the company. Recently, Nomad announced that it was planning to acquire the continental European operations of the Findus Group for £500m ($780.7m).

Nomad has also acquired European frozen food company Iglo Foods from Permira Advisers for €2.6bn.

While Descheemaeker declined to reveal the names of the American companies they were considering, a few sources were quoted as saying that Nomad might explore the option of buying Bellissio Foods, which is owned by private equity firm Centre Partners, or Green Giant, owned by General Mills.

The company is considering entering the frozen food segment at a time when the customers are moving towards fresh foods, which are considered to be fresher and healthier. The sale of pre-made frozen meals is said to have declined in the past few years.

While Nomad normally pays nine times a measure of cash flow, known as earnings before interest, taxes, depreciation, and amortisation on deals, it said it is aware that it might need to pay higher for some assets in the US.