Developments in the Auction of Iglo Foods
A number of private equity firms, including Bain Capital, Clayton Dubilier & Rice, Blackstone Group and BC Partners, are reported to have submitted fist round bids for Iglo Foods, the European frozen foods group. Iglo is owed by Permira, the private equity firm, which has appointed Swiss banking group Credit Suisse to handle the auction. Thailand-based food group Charoen Pokphand Foods is also reported to be a potential bidder.
Iglo produces fish, vegetables, poultry and ready meals, including a number of iconic products such as fish fingers, schlemmer filets and sofficini. The group operates under three brands: Birds Eye (UK and Ireland), iglo (Germany, Austria, Belgium, the Netherlands and other countries) and Findus (Italy).
Birds Eye Iglo was acquired by Permira from Unilever in November 2006 for £1.36 billion. In October 2010, the Findus Italy business was also acquired from Unilever for about £650 million. Since acquisition, Iglo has delivered robust earnings growth through, for example, a strengthened management team and new product development to drive top-line growth.
Iglo had sales of sales Eur1.57 billion and increased EBITDA by 7% to Eur325.8 million in 2011. Analysts expect Iglo to be sold for between Eur2.5 billion and Eur2.9 billion.
