Nomad Foods Enters into Exclusive Negotiations to Acquire Fortenova Group’s Frozen Food Portfolio

Rhea-AI Summary

Nomad Foods Limited (NYSE: NOMD) announced it is in exclusive negotiations to acquire Fortenova Group’s Frozen Food Business Group (FFBG), which includes popular brands such as Ledo and Frikom. This acquisition aims to complement Nomad's strong organic growth by enhancing its frozen food portfolio across Europe. FFBG is the market leader in Southeastern Europe with a diverse product range including fish, fruits, and ready meals. While the talks are at a preliminary stage, Nomad’s strategy focuses on expanding its geographic reach and strengthening its market position.

Positive

• Strategic acquisition to enhance frozen food portfolio in Europe.
• FFBG's established market presence in Southeastern Europe.
• Potential for future consolidation in Central and Eastern Europe.

Negative

• Preliminary negotiations pose uncertainty regarding deal completion.
• Risks associated with integrating FFBG into Nomad's operations.

Nomad Foods Limited (NYSE: NOMD) announced today that it has entered into exclusive negotiations to acquire Fortenova Group’s Frozen Food Business Group (FFBG), which includes Ledo, Frikom and other leading frozen brands.

This prospective transaction is aligned with management’s strategy of complementing strong organic growth in the base business with the acquisition of market leading frozen food brands across Europe.

FFBG has a leading European frozen food portfolio of iconic local brands with strong consumer awareness in Croatia, Serbia, Bosnia & Herzegovina and several other countries in Southeastern Europe. It is the market leader in these regions where it operates across numerous categories including fish, fruits, vegetables, ready meal, pastry and ice cream.

The acquisition of FFBG would extend Nomad’s portfolio into new and developing European markets while also creating a beachhead for potential future consolidation within Central and Eastern Europe.

These discussions are preliminary and there can be no assurance that a transaction will be completed. The company does not intend to provide further updates unless there is a definitive outcome to the discussions.

About Nomad Foods Limited

Nomad Foods (NYSE: NOMD) is Europe’s leading frozen foods company. The company's portfolio of iconic brands, which includes Birds Eye, Findus, iglo, Aunt Bessie's and Goodfella's, have been a part of consumers' meals for generations, standing for great tasting food that is convenient, high quality and nutritious. Nomad Foods is headquartered in the United Kingdom. Additional information may be found at www.nomadfoods.com.

Forward Looking Statements

Certain statements in this announcement are forward-looking statements which are based on the Company’s expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts, including expectations regarding the impact of the FFBG acquisition including the Company’s ability to expand its geographic reach and extend its product offering and brand family while also creating a beachhead for potential future consolidation within Central and Eastern Europe. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210111005521/en/

FAQ

What brands are included in the Fortenova acquisition by Nomad Foods?

The acquisition includes Ledo, Frikom, and other leading frozen brands.

What is the purpose of Nomad Foods acquiring Fortenova's Frozen Food Business Group?

The acquisition aims to strengthen Nomad's position in the European frozen food market and expand its product offerings.

How will the Fortenova acquisition impact Nomad Foods' operations?

If completed, it will enhance Nomad's portfolio, extend its market reach, and create opportunities for future consolidation.

Is the acquisition of Fortenova's Frozen Food Business Group finalized?

No, the negotiations are still at a preliminary stage, and there is no guarantee of completion.

What geographic regions will Nomad Foods expand into with the Fortenova acquisition?

Nomad Foods aims to enter new markets in Southeastern Europe, including Croatia, Serbia, and Bosnia & Herzegovina.