Permira books 2.4x on frozen food platform

Following the partial sale Permira Europe III is delivering a TVPI of 1.7x

European buyout firm Permira has agreed to sell frozen food business Iglo Foods Holdings to Nomad Holdings limited for €2.6 billion, according to a joint statement from Permira and Iglo.

The sale has generated a return of 2.4x for the €5.08 billion Permira Europe III, a 2003-vintage. Permira will retain a nine percent stake in the business.

Permira initially invested in the business in 2006, acquiring the Birds Eye brand in the UK and Ireland and the Iglo brand in Germany and other continental European markets from Unilever to form the Iglo Group.

In 2010 the firm injected more capital into the business to allow it to acquire Findus Italy from Unilever. Fund III and Birds Eye were set to contribute €300 million in equity for the deal, with around €500 million raised in debt to finance the transaction, Private Equity International reported at the time.

Iglo posted revenues of €1.5 billion and EBITDA of €306 million for the 2014 financial year. Headquartered in the UK, the company employs around 2,800 people across Europe.

Following the partial sale there are five portfolio companies remaining in Fund III, including the remaining stake in Iglo and the firm’s stake in UK-based travel and insurance group Saga, which is jointly owned by Permira, CVC Capital Partners and Charterhouse Capital Partners. The consortium listed the company on the London Stock Exchange last year.

The total value to paid in for Fund III to date is 1.7x, it is understood.

Centerview Partners acted as financial adviser to Permira on the transaction, while Skadden, Arps, Slate, Meagher & Flom and Clifford Chance acted as legal advisers. Barclays and UBS Investment Bank acted as financial advisers and Greenberg Traurig acted as legal adviser to Nomad.