Nomad Foods to acquire Aunt Bessie’s for €240m from William Jackson & Son

Food acquisition news : UK-based frozen food company Nomad Foods has struck a deal to acquire Aunt Bessie’s, a frozen food brand for about €240 million from British food manufacturer William Jackson & Son for about €240m.

Nomad Foods Acquisition of Aunt Bessie’s

Nomad Foods acquisition of Aunt Bessie’s is expected to help the former expand its frozen food business into the frozen potato and frozen Yorkshire puddings segments. It follows the completion of Nomad Foods acquisition of Goodfella’s Pizza in late April.

Currently, Aunt Bessie’s enjoys the number one position for frozen Yorkshire puddings and the number two position for frozen potatoes in the UK market, which make up most of its revenues. The UK-based frozen food brand, which earned about €123 million in the fiscal year that ended April 2018, is into manufacturing, distribution and sales of a range of other branded frozen food snacks.

Nomad Foods acquisition of Aunt Bessie’s will help the former develop its portfolio in the UK, which it considers as a strategically key market. The company said that Aunt Bessie’s combined with Birds Eye and Goodfella’s Pizza is likely to create a highly complementary portfolio. Nomad Foods says that this enlarged portfolio will enjoy a significantly better scale, greater diversification and more resources to help accelerate growth of the food category.

Commenting on Nomad Foods acquisition of Aunt Bessie’s, Stefan Descheemaeker -Nomad Foods’ Chief Executive Officer said: “We are excited to welcome Aunt Bessie’s to Nomad Foods. Aunt Bessie’s iconic brand, positive values and strong product credentials align well with our existing portfolio.

“As our second accretive acquisition in 2018, Aunt Bessie’s represents another step toward our goal of transforming the frozen food category and building a portfolio of best-in-class food brands.

“Aunt Bessie’s significantly expands our presence within potatoes, one of the largest categories in frozen food, while adding another dimension to our growing portfolio in the United Kingdom.”

Nomad Foods acquisition of Aunt Bessie’s will also involve the latter’s frozen food plant in Hull, England that employs about 400 people.

Nicholas Oughtred – William Jackson Food Group Chairman, commenting on Nomad Foods acquisition of Aunt Bessie’s, said: “As a responsible business owner we must do what we believe is right for every one of our businesses and this sale presents a great, long-term opportunity for Aunt Bessie’s.

“Aunt Bessie’s has come a long way with us. We’ve invested heavily in developing the business and the brand, and Nomad Foods is well placed to take the business even further. Nomad Foods is a well-known food group with a strong commitment to the frozen category, incredible experience, scale and investment capabilities and I’m sure Aunt Bessie’s will continue to thrive.

“We are exceptionally proud of everyone who works at Aunt Bessie’s and are grateful to them for helping it become the much-loved household name that it is today.”

Nomad Foods acquisition of Aunt Bessie’s, which will be subject to regulatory approvals and other closing conditions, is slated to be completed during Q3 2018.

Noam Gottesman – Nomad Foods’ Co-Chairman and Founder, commenting on Nomad Foods acquisition of Aunt Bessie’s, said: “The acquisition of Aunt Bessie’s illustrates the power of our value creation model which is fueled by organic revenue growth, strong free cash flow and disciplined M&A.

“Similar to Goodfella’s Pizza, which we acquired earlier this year, Aunt Bessie’s is expected to be immediately accretive to earnings while providing complementary category exposure, synergy opportunities and new avenues for growth. We look forward to welcoming the Aunt Bessie’s team to our organization and working together to build on their success.”

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