Nomad Foods has agreed to buy Britain’s Goodfella’s Pizza from Boparan Holdings a subsidiary of Birmingham-based 2 Sisters Food Group for €225 million.
The deal means Nomad Foods, formed in 2014 as a vehicle to consolidate Europe’s slow-growing frozen foods market, has added frozen pizza to its Birds Eye fish fingers and Iglo spinach brands.
The deal is expected to bolster Nomad’s revenues by €150 million and earnings by between €22-25 million two years after the takeover closes.
It is expected to be sealed by the first quarter of 2018.
The acquisition will be funded through cash on hand.
Commenting on the transaction, Nomad Foods CEO Stefan Descheemaeker said: “The acquisition of Goodfella’s Pizza comes at an exciting time for our company. 2017 was a banner year as investments in our core portfolio translated into strong organic revenue growth.
“We exited the year on a high note, with our updated guidance reflecting better than expected top and bottom line performance during the fourth quarter. Goodfella’s Pizza creates a new and exciting growth avenue into frozen pizza, a strategic category that is both sizable and complementary.
“We have a strong foundation in place and are well positioned to create shareholder value as we apply our proven toolkit of capabilities to Goodfella’s Pizza and further develop our portfolio of iconic and market-leading brands. We are excited to welcome the Goodfella’s Pizza employees to the Nomad family.”