A US union has warned workers at French frozen food manufacturer Picard Surgeles about the impact of a possible takeover by private-equity firm Clayton, Dubilier & Rice (CD&R).
CD&R is understood to be considering a bid for Picard Surgeles and The International Brotherhood of Teamsters has written to the heads of three unions in France – CGT, CFDT and FO – detailing “the disturbing aftermath” of CD&R-led takeovers.
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Teamsters general president Jim Hoffa said that CD&R’s participation in the acquisition of Hertz in 2006 was the work of “fast-buck artists” after the firms involved used Hertz assets to pay themselves a US$1bn special dividend and eliminate 1,500 jobs.
Hoffa added that the purchase of Foodservice led to “facility closures, layoffs and loss of market share”.
“CD&R is now leading US Foodservice down a contentious and destructive path,” Hoffa said in the letter. “Under CD&R leadership, US Foodservice continues to disregard the rights of its employees, undermining long-term growth through continued mismanagement, assets sales and cost-cutting.
“I sincerely hope that your unions can avoid a similar leveraged buyout by any firm interested more in extracting and turning deals than continuing to build upon the strong legacy of Picard Surgeles. In our experience, a CD&R takeover can truly hurt workers, their families and entire communities,” he added.
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By GlobalDataHoffa has offered to work with CGT, CFDT and FO to avoid any leveraged buy out for Picard Surgeles.
The private equity firm declined to comment when contacted by just-food.
