A clutch of private-equity firms have submitted first-found bids for Permira-owned frozen food business lqlo Group, it is understood.
According to reports today (11 May), the first round of bids from a handful of private-equity firms were submitted for yesterday's deadline, with a sale expected to value the company at around EUR3bn (US$3.9bn).
Iglo, which is Europe's largest frozen food group, was formed when Permira purchased Iglo for EUR1.7bn from Unilever in 2006 and then combined it with Findus Italy, which it bought for EUR800m, in 2010.
The business achieved EBITDA growth of 7% in 2011, to EUR325.8m (US$523.9m).
"At least" four sponsors including Blackstone and Bain Capital submitted bids by the deadline, Dow Jones Newswires reported, citing people familiar with the situation". The other bidders are understood to be BC Partners and Clayton Dubilier & Rice.
It is understood the sale has generated "strong" interest, although it is not known how many companies have submitted a bid.
The second round of bidding is expected to take place around one month after the first.
Private-equity firm Permira asked Credit Suisse to prepare a sales and marketing document in preparation for a potential sale of Iglo Group frozen food business in March.
Permira began looking into the possibility of a sale after it was contacted by "interested parties", a source familiar with the situation told just-food at the time. If there was enough interest, the investment vehicle would then proceed with the sale through an auction process.
Permira declined to comment on today's reports or which companies have made a bid for Iglo. Likewise, BC Partners and Bain Capital would not comment and Blackstone could not be reached at the time of going to press.
