With the closing of this transaction, Nomad has been renamed Nomad Food Limited.
The transaction was funded through a combination of cash in hand, equity and proceeds from a private placement of approximately USD 795 million at USD 10.50 per ordinary share to a limited group of institutional investors, assumption of Iglo Group’s existing indebtedness and the early exercise of most of Nomad’s outstanding warrants.
The Permira funds and senior management re-invested EUR 133.5 million of their proceeds into Nomad and now own approximately 9 percent of Nomad Foods Limited.
Stéfan Descheemaeker has been announced as the Chief Executive Officer of Nomad and Iglo group.
The New CEO brings a strong background in food retailing, consumer goods corporate strategy to the position. He is also appointed to the Company’s Board of Directors.
Paul Kenyon, Iglo Group’s Chief Financial Officer has been appointed Chief Financial Officer of Nomad, and he is also appointed to the Company’s Board of Directors.
Nomad’s co-founder and co-chairman, Noam Gottesman, commented, “The completion of this acquisition marks the start of Nomad’s growth story. Through Iglo Group, Nomad has gained an established presence in Europe’s fragmented frozen foods space. Martin (Franklin) and I look forward to building on Iglo Group’s market-leading position and to expanding into new and adjacent categories through disciplined M&A activity. Our talented team led by Stéfan, strong financial footing, and supportive shareholder base provide us with the resources necessary to pursue growth opportunities that will pave the way for long-term value creation.”
Descheemaeker said, “I am excited to embark on this journey. There are abundant organic and acquisitive growth opportunities available within the consumer foods space and I look forward to working with both the Nomad and Iglo Group teams in order to realize new levels of success.”
The sale of Iglo Group to Nomad has enable Iglo Group to substantially improve its debt profile through repayment of EUR 490 million in existing tem loans. Iglo Group has repriced its term loans and reduced overall interest rates through an amendment to its Senior Facility Agreement.
These actions have contributed to a recent ratings upgrade by Moody’s to B1 from B2. Standard & Poor’s has revised its outlook from “stable” to “positive” while reaffirming its “B+” rating.
Nomad has changed the composition of its Board of Directors with the closing of the transaction.
Following the announcement of the transaction in April, the trading of Nomads ordinary shares and warrants remain suspended on the London Stock Exchange.
The company is seeking re-admission of its ordinary shares to the standard listing on the Official List and trading on the London Stock Exchange.
Nomad will also look to complete a primary listing of its ordinary shares on the New York Stock Exchange.