Nomad Holdings Limited announced on Monday that the company has completed its acquisition of Europe’s leading frozen food company, Iglo Foods Holdings Limited. Subsequently, Nomad has been renamed to Nomad Foods Limited.
The newly appointed Nomad Foods CEO Stefan Descheemaeker, discussing the $2.9 billion acquisition with FoodProductionDaily, reportedly said that the company is in the process of developing what he referred to as a “strategic plan” intended to induce organic growth while “leveraging Iglo’s iconic brands, market positions, and attractive growth margin profile.”
Iglo sells fish sticks and other frozen foods under the Birds Eye brand. The company, according to a report on the NY Times, already sells some products under the Findus brand in Italy. The Findus Group, a British frozen food and seafood supplier, is in the “early stage” of discussions with Nomad in regards to the acquisition of its Continental Europe business.
While Findus and Nomad are reportedly engaged in discussions, a news release issued Wednesday by Nomad indicated that there “can be no certainty” that discussions will lead to a deal between the two companies.
Nomad is a British Virgin Islands based special purpose acquisition company (SPAC) founded last year by Noam Gottesman and Martin Franklin. The company’s intention is to acquire food businesses.
Bill Ackman’s Pershing Square disclosed a 21.7 percent stake in Nomad Foods on Tuesday, Forbes reported. In regards to the investment, Ackman noted the company’s 80 percent gain since its Iglo deal was announced back in April. He indicated that the acquisition was made at a 8.5 times 2014 adjusted EBITDA, which he referred to as “a reasonable multiple given Iglo Foods’ business quality and modest growth potential.”