Nomad Foods Limited has finalized its previously announced purchase of Green Isle Foods Ltd. from a subsidiary of Boparan Holdings Ltd. for £200 million, subject to customary working capital adjustments. Acquisition of the producer of Goodfella’s Pizza and other frozen pizza products was funded through cash on hand.
Commenting on the deal, Stefan Descheemaeker, chief executive officer of Feltham, England-headquartered Nomad Foods, 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 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.”
It is anticipated that within two years the acquisition will contribute approximately €150 million revenue, or €22 to €25 million adjusted EBITDA and €0.08 to €0.09 adjusted earnings per share.
Goodfella’s Pizza manufactures and distributes a portfolio of leading branded and private label frozen pizzas in the United Kingdom and Ireland. The 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 UK, respectively.
The acquisition also includes the San Marco brand and two frozen pizza manufacturing facilities, which will provide a foundation for future expansion in the category.