Birds Eye owner Nomad announces $105.1m share buyback

 
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The owner of Birds Eye will buy back more than 9 million shares (Source: Birds Eye)

Nomad Foods, owner of frozen food brands including Birds Eye and Findus, is set to buy back $105.1m worth of its shares in a deal to settle old tax claims.

Nomad shares opened at $14.43 on the New York Stock Exchange today, up from the previous closing price of $14.35.

The company will repurchase 9,779,729 shares from funds advised by Permira Advisers LLP for $10.75 per share, representing a 25 per cent discount on the closing price of Nomad shares on Friday 9 June.

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The transaction will increase the firm's earnings per share by 6 per cent, and will be funded by cash on hand. The deal settles indemnity claims against an affiliate of Permira.

The repurchased shares are set to be retired.

Stefan Descheemaeker, CEO of Nomad Foods, said, "Today's announcement represents a unique opportunity for Nomad Foods to create value for its shareholders. We continue to have significant cash on hand and financial capacity to execute acquisitions, a strategic priority, and remain encouraged by the positive momentum in our business."

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