BC Partners' Sale Of Picard To Lion Capital Confirmed

26th Jul 2010 15:07

By Marietta Cauchi Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Lion Capital Monday said it had agreed to buy French frozen food retailer Picard Surgeles from BC Partners having beaten off strong competition from rival buyout firms. Financial details of the transaction weren't disclosed but people familiar with the situation told Down Jones Newswires earlier that the deal valued Picard at EUR1.5 billion. BC Partners bought Picard for EUR1.3 billion in 2004 from Candover. Prior to that it was owned by French supermarket group Carrefour S.A. (CA.FR). One person said that BC Partners would make twice the cash it put into the acquisition. The deal is expected to complete in the fourth quarter following regulatory approval. Picard sells a very wide range of product references through a network of 820 retailing outlets. Its range covers all product categories, from starters to desserts and from raw ingredients to prepared meals. "Picard has established an enviable position within the frozen category by delivering consumers high quality food products with superior taste and nutritional characteristics at attractive price points," said Lyndon Lea, Partner of Lion Capital. "Throughout the economic cycle, the company has driven consistently strong financial performance by offering a high quality and convenient alternative to fresh food, underpinned by a strong emphasis on product innovation," he added. Lion Capital focuses on high quality consumer brands in particular in the food and retailing sectors. Other investments include U.K. cereal brand Weetabix, the Schweppes and Orangina beverage brands. It has also invested in Russian juice producer Nidan and most recently bought a majority stake in Russian Alcohol, the country's largest producer of vodka. The buyout firm, which just last week lost out to rival Permira to buy Unilever PLC's (UL) frozen foods business made its pre-emptive bid ahead of a final bid deadline Wednesday. Other private equity firms bidding for the company included Eurazeo (RF.FR), a France-based buyout firm who was working with the original founders of the business, Bain Capital and CVC Capital Partners. One person said that Lion Capital hadn't put in the highest bid but that CVC, which was in pole position until Friday, wasn't able to put firm financing in place ahead of Lion Capital's bid over the weekend. A spokesperson for CVC declined to comment. Execution and deliverability have become key for private equity buyers as the few good assets coming to market have triggered strong competition among buyout funds desperate to offload funds and start investing again after a two-year hiatus. -By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241; [email protected] (END) Dow Jones Newswires July 26, 2010 10:07 ET (14:07 GMT)