LONDON, UK / ACCESSWIRE / January 19, 2018 / Active-Investors.com has just released a free research report on Nomad Foods Ltd (NYSE: NOMD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NOMD as the Company's latest news hit the wire. On January 17, 2018, the leading frozen foods Company that holds a global portfolio of best-in-class food companies and brands within the frozen category and across the broader food sector, declared that it has entered into an agreement to acquire Green Isle Foods Ltd, i.e. Goodfella's Pizza from a subsidiary of Boparan Holdings Ltd for nearly €225 million on a debt free, cash free basis. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Nomad Foods most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Goodfella's Pizza, a Leader in the Frozen Pizza Category
Goodfella's Pizza manufacturers as well as distributes a range of leading branded and private label frozen pizzas in the United Kingdom and Ireland.
The Goodfella's brand, which was found in 1993, accounts for the majority of Goodfella's Pizza revenues. In fact, it holds the number one market share position in the frozen pizza category in Ireland and number two position in the United Kingdom.
This acquisition also covers Goodfella's San Marco brand and its two frozen pizza-manufacturing facilities, which would offer opportunities for future expansion in this category.
Strategic Benefits for Nomad Foods
- Entry into frozen pizza category: The acquisition of Goodfella's Pizza is expected to expand Nomad Foods' portfolio into the sizable and complementary frozen pizza category. The Company already has a strong foundation in place and looks forward to welcoming the Goodfella's Pizza team to the Nomad family.
- Strengthen Market Leadership in Ireland and UK: It is believed that Goodfella's Pizza brands and team would broaden Nomad Foods' product offering and customer reach, and solidify its market leadership within the United Kingdom and Ireland.
- Generating Additional Value for Shareholders: Nomad Foods expects to create value for its shareholders by utilizing its proven toolkit of capabilities for expanding Goodfella's Pizza and further developing its portfolio of iconic and market leading brands.
Appropriate Timing for Acquisition
Stefan Descheemaeker, Chief Executive Officer at Nomad Foods, believes that the acquisition of Goodfella's Pizza is happening at the appropriate time. The year 2017 was a banner year for Nomad Foods as investments in its core portfolio led to strong organic revenue growth. Nomad Foods ended 2017 on a high note, with its updated guidance showing better than expected top- and bottom-line performance during the fourth quarter. The strong organic revenue growth momentum would make it easier for the Company to expand into new strategic categories such as pizza, which offer complimentary avenues for further growth and synergies.
Financial Implications
Nomad Foods intends to fund this transaction through existing cash on hand.
It expects the acquisition to be immediately accretive to adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) and adjusted earnings per share. The acquisition is projected to contribute approximately €150 million to revenue, €22 million to €25 million to adjusted EBITDA and €0.08 to €0.09 to adjusted earnings per share within two years post-closing.
As of now, the transaction is subject to certain closing conditions. Post which, it is expected to close in the first quarter of 2018.
Results for 2017 to Exceed Prior Guidance
Additionally, Nomad Foods expects 2017 results to be better than expected. Adjusted EBITDA for 2017 is projected to be approximately €328 million compared to the prior expectations of €325 million to €327 million. Similarly, the organic revenue growth is expected to be around 5% for Q4 2017, up from the prior guidance of approximately 3%.
Nomad Foods intends to share results for the quarter ending December 31, 2017, and audited full year 2017 in March 2018.
Stock Performance Snapshot
January 18, 2018 - At Thursday's closing bell, Nomad Foods' stock was marginally up 0.36%, ending the trading session at $16.94.
Volume traded for the day: 5.77 million shares, which was above the 3-month average volume of 1.04 million shares.
Stock performance in the last month – up 2.54%; previous three-month period – up 14.23%; past twelve-month period – up 64.79%; and year-to-date - up 0.18%
After yesterday's close, Nomad Foods' market cap was at $2.98 billion.
Price to Earnings (P/E) ratio was at 23.43.
The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry.
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