Frozen food manufacturer Nomad Foods has completed the acquisition of Green Isle Foods for £200 million in cash.
The acquisition of the company, which owns the Goodfella’s Pizza brand, marks a move towards expanding Nomad’s share in the Western European frozen food market.
The deal sees Nomad add frozen pizza to its portfolio of frozen food brands such as Bird's Eye, Iglo and Findus.
Nomad said the acquisition will be immediately accretive to adjusted EBITDA and adjusted earnings per share.
Within two years, the company expects Goodfella's to contribute approximately €150 million revenue, €22 to €25 million adjusted EBITDA and €0.08 to €0.09 adjusted earnings per share.
The acquisition also includes the San Marco brand and two frozen pizza manufacturing facilities in Naas and Longford in Ireland, which provide a foundation for future expansion in the category, according to Nomad Foods.
Goodfella’s Pizza manufactures and distributes a portfolio of leading branded and private label frozen pizzas in the UK and Ireland.
Founded in 1993, the Goodfella’s brand accounts for the majority of Goodfella’s Pizza revenues and holds number one and number two market share positions within the frozen pizza category in Ireland and the UK, respectively.
Nomad announced its plans to acquire Goodfella’s Pizza from 2 Sisters Food Group at the beginning of this year.
It finished off 2017 with strength, reporting a revenue increase of 1.5% to €1.95 billion for the year, boosted by a 4.7% growth in the fourth quarter.
Credit Suisse acted as financial advisor and Norton Rose Fulbright and Matheson acted as legal advisors to Nomad Foods on the transaction.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: European Supermarket Magazine.