Blackstone, BC Partners team up to bid for Iglo Group

Private equity firms Blackstone and BC Partners have teamed up to bid for Iglo Group, Europe's largest frozen food company, which has been put up for sale by its owners, Permira, another PE firm, with a price tag of up to €2.8 billion ($3.55 billion), Reuters today reported, citing a person familiar with the situation said.

The two are the last in the bidding process, after PAI Partners pulled out last month, unable to meet the asking price on its own or find a partner for a joint bid, said the news agency.

European private equity firm Permira had acquired Iglo Group in 2006 from Unilever for £1.4 billion, and expanded the company in 2010 by buying Findus Italy for £669 million as well as launching new products in several countries.

Permira had in March appointed Credit Suisse to start an auction process, had initially attracted interest from a host of buy-out rivals, such as Bain Capital, BC Partners and PAI Partners, as well as New Jersey-based Pinnacle Foods Finance LLC, which owns the US rights to the Birds Eye Foods brand.

Blackstone owns Pinnacle Foods, whose brands also include Aunt Jemima, Hungry Man frozen dinners and Armour canned meats, for $2.2 billion in 2007.

Feltham, UK-based Iglo is the frozen foods market leader in Europe both in terms of sales and brand recognition. It produces branded frozen food products in 11 countries and has currently entered central and Eastern Europe including Russia and Turkey.