Nomad Foods to buy Goodfella’s Pizza for €225m

Frozen foods company Nomad Foods has entered an agreement to acquire Green Isle Foods (Goodfella’s Pizza), Ireland’s frozen food producer.

Goodfella’s Pizza is acquired from a subsidiary of UK’s food producer Boparan Holdings, for nearly €225m on a debt free, cash free basis, through cash on hand.

Nomad Foods CEO Stefan Descheemaeker said: “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.”

The acquisition also includes Goodfella’s Pizza’s San Marco brand and two frozen pizza manufacturing units.

As per Nomad Foods, the acquisition is to be immediately accretive to adjusted EBITDA and adjusted earnings per share.

Within two years post-closing, it would contribute nearly €150m revenue, €22 to €25m adjusted EBITDA and €0.08 to €0.09 adjusted earnings per share.

The transaction is expected to be completed in the first quarter of this year, subject to closing conditions.

Nomad Foods co-chairman and founder Noam Gottesman said: “The Goodfella’s Pizza brands and team broaden our product offering and customer reach, and solidify our market leadership within the United Kingdom and Ireland.”

Nomad Foods has a global portfolio of food companies and brands within the frozen category and across the broader food sector.

Founded in 1993, Goodfella’s Pizza produces and distributes frozen pizzas in the UK and Ireland.