Nomad Foods to buy UK's Goodfella's frozen pizza

[LONDON] Nomad Foods said on Wednesday it had agreed to buy Britain's Goodfella's Pizza from a subsidiary of Boparan Holdings for 225 million euros (S$364 million), adding frozen pizza to its Birds Eye fish fingers and Iglo spinach brands.

Nomad, formed in 2014 as a vehicle to consolidate Europe's slow-growing frozen foods market, has not done a deal since 2015, as it worked to turn around its ailing businesses. The chief executive told Reuters last year that performance had improved and it was looking for deals.

Nomad also raised its earnings forecast for 2017, saying fourth-quarter revenue was expected to have grown 5 per cent instead of the 3 per cent previously flagged.

It said 2017 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) would be about 328 million euros, above its earlier range of 325-327 million.

Nomad expects the Goodfella's deal to add to earnings immediately, and to contribute about 150 million euros to revenue and 8-9 euro cents to earnings per share within two years after the deal's closure, expected during the first quarter of 2018.

The acquisition will be funded through cash on hand.

REUTERS