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.

Its core brands are Birds Eye, Findus and Iglo frozen foods, which are the top 5 market leading positions in nine countries.

Birds Eye is the market leader in frozen food and the only brand with a significant presence in the major food categories such as fish, vegetables, poultry and ready meals.

Iglo claims that one in every five pounds spent on frozen food in the UK is spent on a Birds Eye product, and its famous Fish Fingers are eaten every 20 seconds.

The company also produces fruit juice concentrates, frozen vegetables, fish, chicken, red meat, pies, meals, potatoes, and desserts. The company also manufactures food including Salti in Padella and Sofficini.

Its manufacturing sites are located in Bremerhaven and Reken in Germany, Lowestoft in the UK and Cisterna in Italy.

Iglo, which has seen 8 per cent profit growth every year since 2008, is said to have notched sales of more than €1.1 billion ($1.5 billion) in 2011, mainly after entering new markets such as Russia and Turkey.