Nomad Foods completes acquisition of Goodfella’s Pizza
Nomad Foods Limited has announced that it has completed its previously announced acquisition of Green Isle Foods Ltd (“Goodfella’s Pizza) from a subsidiary of Boparan Holdings Ltd. for a purchase price of £200 million, subject to customary working capital adjustments.
Commenting on the transaction, Stefan Descheemaeker, Nomad Foods’ Chief Executive Officer said, “Goodfella’s represents an important step in expanding our share of the frozen food category in Western Europe. The transaction is expected to be immediately accretive to earnings and creates a complementary avenue of growth to our base business, which continues to gain market share. We are excited to welcome Goodfella’s to the Nomad Foods organisation and look forward to driving shareholder value by combining our scale and commercial capabilities with their deep knowledge and expertise of the attractive frozen pizza category.”
As previously stated, Nomad Foods expects the acquisition to be immediately accretive to adjusted EBITDA and adjusted earnings per share, and within two years contribute approximately €150 million revenue, €22 to €25 million adjusted EBITDA and €0.08 to €0.09 adjusted earnings per share. The purchase was funded through cash on hand.
Goodfella’s Pizza manufactures and distributes a portfolio of leading branded and private label frozen pizzas in the United Kingdom and Ireland. The Goodfella’s brand, which accounts for the majority of Goodfella’s Pizza revenues, was founded in 1993 and holds number one and number two market share positions within the frozen pizza category in Ireland and the United Kingdom, respectively. The acquisition also includes the San Marco brand and two frozen pizza manufacturing facilities which provide a foundation for future expansion in the category.
Credit Suisse acted as financial advisor and Norton Rose Fulbright and Matheson acted as legal advisors to Nomad Foods on the transaction.