Nomad Foods completes acquisition of Fortenova Group’s frozen food business

EUROPE – Frozen food manufacturer Nomad Foods has completed its acquisition of Fortenova Group’s frozen food business after clinching the agreement to do so in March this year. 

The acquisition which was made for €615m (US$714m) gives Nomad foods an expanded footprint which includes attractive markets such as  Croatia, Serbia, Bosnia & Herzegovina, Hungary, Slovenia, Kosovo, North Macedonia and Montenegro. 

Nomad Foods is expected to have a lead market presence as Fortenova’s two anchor brands, Ledo and Frikom, had strong consumer awareness and number one market share in many of these markets. 

Through the frozen foods business, the company offered a broad range of frozen food products including fish, fruits, vegetables, ready meals, pastry, and ice cream which will now become part of Nomad Foods.  

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Stefan Descheemaeker, Nomad Foods’ chief executive officer, said: “Fortenova Frozen has performed well in 2021 and we expect the strength of our combined organisations to create value for years to come”.   

Based on strong performance in the current financial year, Nomad Foods expects Fortenova Frozen to achieve mid-single-digit revenue growth and adjusted profit before interest, taxes, depreciation, and amortization slightly ahead of the prior expectation of €53m in 2021 at year-end.  

Additionally, the company believes that the newly acquired business could achieve 50% growth in that profit line, driven in part through a combination of increased scale, operational excellence, commercial optimisation, and expense management. 

Descheemaeker further noted that the company was adapting to the post-pandemic environment while navigating macro challenges facing the broader packaged food sector.  

“With nine months of the year now complete, the profitability of our base business is tracking at the high end of our guidance range despite the anniversary of elevated demand resulting from COVID-19, the re-opening of Europe, a dynamic inflationary backdrop and supply and logistics constraints,” he added.  

 “While we now expect a modest organic revenue decline versus the prior year, due in large part to normalizing category trends, growth is still expected to be in the mid-single digit range on a two-year compounded basis.” 

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Nomad’s acquisition of Fortenova Group’s frozen food business follows its acquisition of Findus Switzerland in November 2020. 

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