Unilever Frozen Food Business Sold to Private Equity

29/08/06 Unilever has agreed to sell its European frozen food business, including Birds Eye, to private equity firm Permira for 1.7bn euros. The firm's operations in the United Kingdom, Austria, Belgium, France, Germany, Ireland, the Netherlands and Portugal will change hands in the deal.

Unilever said in a statement it would retain its frozen foods business in Italy, and that the deal did not include operations in Spain, which were sold two months ago. Unilever's ice cream business was not included in the Permira deal, the company said.

The company decided to sell after years of underperformance, and its frozen food sales dipped 4.5 percent last year as many European consumers continued to turn to fresh or chilled meals.

Permira is understood to have seen off competition from bidders including Capvest and a consortium of Blackstone, JP Morgan Partners and Kerry Foods, the Sunday Times reported at the weekend.

Unilever put the unit, which includes the Birds Eye and Iglo brands, up for sale in February. "Having taken the decision to focus our portfolio on other priorities, I am confident that the business will prosper under the dedicated and focused management that Permira will bring," said Patrick Cescau, Unilever's group chief executive.