Nomad Holdings inks $2.8bn deal to acquire Iglo Foods

Acquisition company Nomad Holdings will spend approximately €2.6bn ($2.8bn) to acquire Europe-based frozen food company Iglo Foods Holdings.

Once the transaction is completed, Nomad will change the company’s name to Nomad Foods.

Iglo produces brands including Birds Eye in the UK and Ireland, Iglo in Germany, Austria, the Netherlands and other continental European markets. The company also acquired Findus Italy in 2010.

Nomad Holdings co-founder Martin Franklin said: "We took a highly disciplined approach to evaluating opportunities for Nomad’s initial investment.

"During this process, it was abundantly clear that Iglo Group was a natural fit from both a strategic and a financial standpoint. This is a well-run business that has cemented itself as a leader in an attractive, yet highly fragmented sector, which paves the way for both organic and inorganic growth opportunities."

As well as supporting Iglo’s organic growth initiatives, Nomad will also pursue strategic and complementary acquisitions to improve its company portfolio and deepen its market leadership.

Iglo Group’s CEO Elio Leoni Sceti said: "This is a significant stepping stone for Iglo Group as we continue to revitalize consumer interest in frozen food with meaningful innovation for every day, every meal and everybody.

"As part of Nomad, Iglo Group will benefit from Noam’s and Martin’s truly world-class leadership capabilities, which I am confident will enable the company to reach new levels of success."

Nomad plans to fund the acquisition using a combination of cash, equity and proceeds from a private placement of approximately $750m, at $10.50 per ordinary share, to a limited group of institutional investors.

Nomad has asked the London Stock Exchange to suspend trading in its stock till the completion of the deal. The company also expects to pursue a listing on the New York Stock Exchange.

Igloo currently employs approximately 2,800 people across Europe, with recorded sales of €1.5bn in 2014.