LONDON, July 19 (Reuters) - Unilever has sold its slow growth Italian frozen foods unit Findus to Birds Eye Iglo for 805 million euros ($1.1 billion), reuniting it with the business it sold four years ago to private equity group Permira.
The disposal of Unilever’s last remaining frozen foods business in Europe follows the consumer goods giant’s sale of Birds Eye Iglo to Permira in 2006 for 1.73 billion euros ($2.18 billion), or an EBITDA multiple of 9.9, but kept its Italian business, Findus Italy.
Together Permira and Birds Eye Iglo will put about 300 million euros in equity funding into the deal, the remainder being debt, a source familiar with the situation said.
Findus Italy was being touted for sale on earnings before interest, tax, depreciation and amortisation (EBITDA) of 88.5 million euros, sources previously said, valuing the deal at about nine times earnings. That figure had not discounted up to 15 million euros in overheads, however.
Unilever, whose broad-ranging portfolio includes Wall’s ice cream and Dove soap, said on Monday about 650 factory and head office staff at Findus Italy, which had sales of 462 million euros in 2009, would transfer to the new owner.
"Unilever is now in a stronger position to focus on its core categories outside frozen food and achieve long-term growth in the Italian market," Unilever Italy Chairman James Hill said in a statement.
Unilever shares were up 1.28 percent at 1,906.78 pence at 1034 GMT.
The deal gives Birds Eye Iglo, famed for its fish fingers and frozen peas, a foothold in Europe’s fourth largest frozen foods market and brands including 4 Salti in Padella, Sofficini and That’s Amore.
Reuters had reported last week that Permira was neck and neck with Lion Capital in the race to buy Findus, ahead of BC Partners.
Lion Capital bought Findus Group, which has no current links to Findus Italy, for 1.1 billion pounds ($1.66 billion) in 2008 from rival private equity house CapVest in a move which brought together the former Nestle Findus frozen foods business and Young’s Bluecrest Seafood in Britain. ($1=.7706 euros)
