Permira’s Iglo renegotiates loan terms amidst ambitious growth plans


Iglo, the private equity-owned European frozen food company that owns the Birds Eye brand, has renegotiated one of its loan covenants, according to reports.

Private equity backer Permira last year revived plans to pay itself a dividend by refinancing the company, after scrapping a previous dividend scheme in July. It initially sought a €1.9bn recapitalisation to refinance Iglo’s €1.4bn debt pile and take a dividend of between €500m and €600m, but it was forced to make do with a payout of nearer €250m through a deal run by Credit Suisse, HSBC, Nomura and UBS.

Recently appointed chief executive Elio Leoni Sceti aims to boost the company’s sales to €3.2bn by 2020. He was parachuted in by Permira back in May after former head Martin Glenn stepped down. November 2006 Glenn headed up Permira’s successful bid to buy the frozen food business from Unilever.

Permira picked up Iglo for €1.89bn in 2006, and added the remainder of Unilever’s European frozen food operations by acquiring Findus Italy four years later.

Last year Permira was said to be looking to offload the business to fellow buyout groups Blackstone and BC Partners.

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