Nomad Foods has announced that it is set to acquire Green Isle Foods, which operates the Goodfella's Pizza brand, for approximately €225 million.
The deal will see Nomad add the frozen pizza business to its portfolio, which includes frozen food brands such as Bird's Eye, Iglo and Findus.
It is acquiring the business from 2 Sisters Food Group, a subsidiary of Boparan Holdings.
The group is the UK’s second-largest food company by turnover, operating 12 production sites in the country, with brands such as Fox's Biscuits and Donegal Catch.
Goodfella's Pizza manufactures and distributes a range of branded and private label frozen pizzas in the UK and Ireland. The acquisition will also include the San Marco brand, and two manufacturing facilities in Naas and Longford in Ireland, which Nomad Foods says will provide a foundation for future expansion.
"2017 was a banner year as investments in our core portfolio translated into strong organic revenue growth," said Stefan Descheemaeker, CEO of Nomad Foods.
"We have a strong foundation in place and are well positioned to create shareholder value as we apply our proven toolkit of capabilities to Goodfella’s Pizza and further develop our portfolio of iconic and market leading brands. We are excited to welcome the Goodfella’s Pizza employees to the Nomad family.”
Further Growth And Synergies
"With strong organic revenue growth momentum, the time is right to expand into new strategic categories such as pizza, which offer adjacent avenues for further growth and synergies." Noam Gottesman, Nomad Foods’ Co-Chairman and Founder, commented.
"The Goodfella’s Pizza brands and team broaden our product offering and customer reach, and solidify our market leadership within Ireland and the United Kingdom."
Nomad Foods expects the acquisition to be immediately accretive to adjusted EBITDA and adjusted earnings per share and, within two years post-closing, contribute approximately €150 million revenue, €22 to €25 million adjusted EBITDA and €0.08 to €0.09 adjusted earnings per share.
Nomad Foods reported revenue of €459 million in the third quarter of its financial year, representing growth of 4.4%, and is set to release its full-year results in March.
© 2018 - Checkout Magazine by Donna Ahern