Nomad Foods Ltd. said June 4 that it agreed to acquire fellow frozen foods producer Aunt Bessie's Ltd. from William Jackson & Son Ltd. for approximately €240 million.
Feltham-based Nomad Foods said it expects the deal to further develop its portfolio in the U.K., which it considers a strategically important market. The acquisition will also allow Nomad Foods to expand into the frozen potato and frozen Yorkshire pudding segments.
In addition, the company said it expects the combination of its Birds Eye brand, its recently acquired Goodfella's Pizza and Aunt Bessie's to result in a portfolio with an enhanced scale, greater diversification and more resources to ramp up growth.
"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 United Kingdom," Nomad Foods CEO Stefan Descheemaeker said in the release.
The acquisition of Aunt Bessie's includes the transfer of a production facility in Hull, England.
For its fiscal year ended April 30, Aunt Bessie's recorded €123 million in revenue and €23 million in adjusted EBITDA, according to the announcement.
Nomad Foods expects to fund the transaction through cash on hand and debt. The deal is expected to be completed in the third quarter of 2018, subject to customary closing conditions and regulatory approvals.
Credit Suisse acted as financial adviser and Norton Rose Fulbright acted as legal adviser to Nomad Foods, while Stamford Partners acted as financial adviser and Addleshaw Goddard acted as legal adviser to William Jackson & Son on the transaction.
