Findus Italy sale attracts private equity buyers

Unilever has decided to proceed with the sale of its Italian frozen food unit as it has two potential buyers lined up, it has been reported.

Birds Eye Iglo owner Permira and Findus Group owner Lion Capital, both private equity firms, have organised advisers in anticipation of the release of the information memorandum in the next two weeks.

Findus Italy, which produces ready-meal frozen traditional Italian dishes such as carbonara and bolognese, is said to be worth between £444m and £710m.

It is thought the business' stable cash flow may attract more private equity firm contenders for the sale, particularly those with investments in the food industry already.

Findus Italy was the only part of the European food business Unilever retained when it sold Birds Eye and Iglo to Permira in 2006 in a deal worth €1.7bn.

Patrick Cescau, Unilever's last chief executive made the decision not to sell Findus Italy in 2006 as it was integrated with its ice cream unit, including the Viennetta and Cornetto brands. His replacement Paul Polman thought otherwise and has put the business on the market.

The sale of the business had previously been contemplated in December, with Goldman Sachs acting as adviser.

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