Nomad Foods is to buy Goodfellas pizza supplier Green Isle Foods from 2 Sisters Food Group.
Birds Eye owner Nomad is to pay around €225m (£199.3m) for the frozen pizza business of Green Isle Foods, which includes brands Goodfella’s and San Marco, as well as ongoing supply of own-label frozen pizza contracts to UK and Irish retailers.
Nomad will take on two frozen pizza-manufacturing facilities, which it said would provide a foundation for future expansion in the category. The company expects the acquisition to increase its revenue by around €150m (£132.8m) in two years.
“With strong organic revenue growth momentum, the time is right to expand into new strategic categories such as pizza, which offer adjacent avenues for further growth and synergies,” said Nomad Foods co-chairman and founder Noam Gottesman.
“The Goodfella’s Pizza brands and team broaden our product offering and customer reach, and solidify our market leadership within the UK and Ireland.”
2 Sisters is to retain ownership of the frozen pastry, frozen vegetable and frozen fish parts of Green Isle Foods businesses, which include brands UpperCrust, Green Isle and Donegal Catch.
2 Sisters Food Group chief executive Ranjit Singh said the company had received a number of approaches over the past few years for the pizza business, and had talked to several interested parties.
“But a sale had to be at the right time, with the right buyer, and it had to be a deal that fitted with our long-term strategy,” he added. “This deal represents our first major step to transform 2 Sisters and build a better business.”
“Nomad Foods is a fabulous new home and this deal will enable the business to continue to flourish with a new owner who are experts in the frozen category.”
The transaction is expected complete in the first quarter of 2018, subject to conditions.