Permira initiates sale process of Iglo
Private equity firm Permira has initiated the sale process of its Frozen foods company Iglo, which…Private equity firm Permira has initiated the sale process of its Frozen foods company Iglo, which owns Captain Birds Eye brand and the Italian unit of food company Findus.
Swiss banking giant Credit Suisse, which has been hired to handle the auction, has sent the information memorandums to six potential bidders, including private equity firms Blackstone, Clayton Dubilier & Rice, BC Partners and Kohlberg Kravis Roberts & Co.
The first round bids are expected to be initiated in about four weeks, The Wall Street Journal reported, citing people familiar with the deal.
Iglo is expected to post earnings before interest, tax, depreciation and amortisation (Ebitda) of €325m in fiscal 2011, while sales are likely to be above €1.1bn. Permira expects the sale to fetch €2.5bn- €2.9bn, around eight or nine times the Ebitda, which will make the deal one of the biggest private equity transactions of 2012.
The auction of Iglo was initiated after Permira received unsolicited expressions of interest from several companies.
Permira acquired Iglo from Unilever for €1.7bn in 2006, following which the frozen foods company launched new products into several markets. In 2010, the equity firm expanded the Iglo operations further by acquiring Findus Italy from Unilever for €800m and combining it with Iglo.
