LONDON, Jan 17 (Reuters) - Nomad Foods said on
Wednesday it had agreed to buy Britain's Goodfella's Pizza from
a subsidiary of Boparan Holdings for 225 million euros ($275
million), adding frozen pizza to its Birds Eye fish fingers and
Iglo spinach brands.
Nomad, formed in 2014 as a vehicle to consolidate Europe's
slow-growing frozen foods market, has not done a deal since
2015, as it worked to turn around its ailing businesses. The
chief executive told Reuters last year that performance had
improved and it was looking for deals.
Nomad also raised its earnings forecast for 2017, saying
fourth-quarter revenue was expected to have grown 5 percent
instead of the 3 percent previously flagged.
It said 2017 adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA) would be about 328
million euros, above its earlier range of 325-327 million.
Nomad expects the Goodfella's deal to add to earnings
immediately, and to contribute about 150 million euros to
revenue and 8-9 euro cents to earnings per share within two
years after the deal's closure, expected during the first
quarter of 2018.
The acquisition will be funded through cash on hand.
($1 = 0.8192 euros)
(Reporting by Martinne Geller; Editing by Mark Potter)
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