Findus deal to yield £7M more savings than expected

The reassessment came as the frozen food giant, which also bought Iglo group this year, posted its results for the three months to September 30 2015.

When the Findus deal was announced, Nomad had a synergy target of up to €30M (£21M) over three years. But it now aims to deliver synergies of up to €40M (£28M).

Nomad co-chairman and founder Noam Gottesman said the acquisitions of Iglo and Findus would help the investment firm to build the “best-in-class” global consumer foods company. 

‘Substantial cost-savings’ 

“Our strategic acquisitions of Iglo and the Findus Group’s continental European business will increase Nomad’s market share across Europe and allow us to yield substantial cost-saving synergies,” Gottesman said. 

Revenue was €315.5M (£222.7M), resulting in €6.3M (£4.4M) profit, in the three months to September 30, the firm announced today (November 16). 

No revenue was made last year because Nomad was founded as an investment vehicle without operational business in April 2014. 

Nomad chief executive officer Stéfan Descheemaeker said the third quarter performance was in-line with expectations given the difficult retail environment across its largest markets. 

“As we look forward to fiscal 2016, we are confident our revised strategy (shift from innovation to renovation, revenue management focus, recalibration between local and global), our renewed cost savings programme and our management changes will enable us to improve results and take advantage of the growth opportunities in Europe,” he said. 

‘Frozen and packaged food’  

“In addition, our successfully completed acquisitions of Iglo and the Findus Group’s continental European business, and the synergies we are confident of delivering, will strengthen Nomad’s position as a leader within the frozen and packaged food space and enable us to strengthen our position in the marketplace.”  

Iglo, which boasts frozen food brand Birds Eye, was acquired for about £1.87bn in June and the £500M Findus acquisition was completed this month.  

Young’s Seafood, the remaining part of Findus which was excluded from the deal with Nomad, plans to focus on processing efficiencies and market growth. 

The UK-­based fish processor kept its existing investors through a new holding company called Young’s Seafood International Holdings.