Private-equity firm Permira is to look at “other options” for frozen food company Iglo Group, including refinancing debt, after rejecting a bid for the firm this week.
Private-equity firms Blackstone Group and BC Partners will not submit a revised offer for the company after their initial bid was rejected by owner Permira.
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The offer, said to be GBP2.5bn, was turned down this week because it came in under the price Permira wanted.
However, a source close to the company commenting on Permira’s rejection of the bid, said it still has “other options” and did not need to sell Iglo, adding the Birds Eye manufacturer is a “very good company”.
The source said Permira may consider refinancing Iglo’s debt. “The leverage has comedown by quite a bit so there is capacity to leverage again and therefore invest further in the company.”
At the end of 2011, Iglo had net debt of some EUR1.4bn, according to Reuters, equating to around four times the company’s projected 2012 EBITDA of around EUR350m.
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By GlobalDataReports have also suggested Permira plans to expand across Europe with an emphasis on eastern Europe.
Permira declined to comment.
