Nomad Foods to Acquire Aunt Bessie’s in United Kingdom
Feltham, England-headquartered Nomad Foods Limited has entered into an agreement to acquire Aunt Bessie’s Limited from William Jackson & Son Limited for approximately €240 million. The deal includes a production facility in Hull, England.
Aunt Bessie’s is a leading frozen food company in the United Kingdom, where it manufactures, distributes and sells a range of products. The brand holds number one and number two market share positions, respectively, within frozen Yorkshire puddings and value added frozen potato segments, which combine to represent the majority of its revenues. As a label closely identified with roast dinners, Aunt Bessie’s will expand Nomad Foods’ presence into this major eating occasion.
The acquisition of Aunt Bessie’s is expected to further develop Nomad Foods’ range in the strategically important UK market. The combination of Aunt Bessie’s, Birds Eye and recently acquired Goodfella’s is expected to result in a highly complementary line with significantly enhanced scale, greater diversification and more resources to accelerate category growth.
Commenting on the transaction, CEO Stefan Descheemaeker said: “As our second accretive acquisition in 2018, Aunt Bessie’s represents another step toward our goal of transforming the frozen food category and building a portfolio of best-in-class food brands. It significantly expands our presence within potatoes, one of the largest categories in frozen food.”
Noam Gottesman, the company’s co-chairman and founder, added: “The acquisition of Aunt Bessie’s illustrates the power of our value creation model which is fueled by organic revenue growth, strong free cash flow and disciplined M&A. Similar to Goodfella’s Pizza, which we acquired earlier this year, Aunt Bessie’s is expected to be immediately accretive to earnings while providing complementary category exposure, synergy opportunities and new avenues for growth.”
For its fiscal year ending in April of 2018, Aunt Bessie’s generated revenues and adjusted EBITDA of approximately €123 million and €23 million, respectively. The purchase price is expected to be funded through cash on hand and debt. The transaction is expected to be completed during the third quarter of 2018, subject to certain closing conditions including obtaining any necessary regulatory approvals.