UK: Nomad Foods to acquire Aunt Bessie’s in US$281m deal
05 Jun 2018 --- Nomad Foods Limited has entered into an agreement to acquire Aunt Bessie’s Limited from William Jackson & Son Limited for approximately €240 million (US$281 million). The UK-based frozen food company manufactures, distributes and sells a range of branded frozen food products and the Aunt Bessie’s brand holds number one and number two market share positions, respectively, within frozen Yorkshire puddings and frozen potatoes. These combined represent the majority of the company’s revenues.
The brand is closely identified with roast dinners – the British traditional Sunday family meal – and Aunt Bessie’s will expand Nomad Foods’ portfolio into this major eating occasion. The acquisition includes a production facility in Hull, England.
The acquisition is also expected to further develop Nomad Foods’ portfolio in the strategically important UK market.
The combination of Aunt Bessie’s, Birds Eye and recently acquired Goodfella’s is expected to result in a highly complementary portfolio with significantly enhanced scale, greater diversification and more resources to accelerate category growth, says the company.
In January, Goodfella’s Pizza was offloaded to the owner of Birds Eye, Nomad Foods, in a €225 million deal (US$274 million). Nomad Foods Limited entered into an agreement to acquire Green Isle Foods Ltd. from a subsidiary of Boparan Holdings Ltd. for the estimated sum on a debt free, cash free basis.
“We are excited to welcome Aunt Bessie’s to Nomad Foods. Aunt Bessie’s iconic brand, positive values and strong product credentials align well with our existing portfolio,” says Stefan Descheemaeker, Nomad Foods’ CEO.
“As our second accretive acquisition in 2018, Aunt Bessie’s represents another step toward our goal of transforming the frozen food category and building a portfolio of best-in-class food brands.”
“Aunt Bessie’s significantly expands our presence within potatoes, one of the largest categories in frozen food, while adding another dimension to our growing portfolio in the UK.”
For its fiscal year ended April 2018, Aunt Bessie’s generated revenues and adjusted EBITDA of approximately €123 million (US$144 million) and €23 million (US$27 million), respectively.
The purchase price is expected to be funded through cash on hand and debt and the transaction is expected to be completed during the third quarter of 2018, subject to certain closing conditions including obtaining any necessary regulatory approvals.
“The acquisition of Aunt Bessie’s illustrates the power of our value creation model which is fueled by organic revenue growth, strong free cash flow and disciplined M&A,” says Noam Gottesman, Nomad Foods’ Co-Chairman and Founder.
“Similar to Goodfella’s Pizza, which we acquired earlier this year, Aunt Bessie’s is expected to be immediately accretive to earnings while providing complementary category exposure, synergy opportunities and new avenues for growth.”
“We look forward to welcoming the Aunt Bessie’s team to our organization and working together to build on their success.”
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