Mindful Capital hires adviser to sell Italian Frozen Food Holding

A sale process for the frozen foods producer is expected to launch between September and October, and teasers will be sent to both private equity firms and industry players, the sources said.

Mindful Capital, Italian Frozen Food Holding and Vitale did not return requests for comment.

As reported in April by Mergermarket, earlier this year the sponsor arranged informal meetings with advisors interested in a mandate to sell the business.

Italian Frozen Food Holding will shop itself at over EUR 10m expected 2022 EBITDA, said one of the sources.

In 2021, the company generated EUR 73m revenue, and it expects to reach EUR 85m with a strong EBITDA margin this year, following its expansion into the US, where it opened a production plant in 2021, as reported.

The COVID-19 pandemic has provided an additional lift to the already-growing frozen foods space, with sales of these products significantly increasing since the start of the crisis, one source familiar argued. The environment following the Russian invasion in Ukraine remains delicate, but the food industry has acquired a crucial role in these times, and timing for this sale in the autumn makes sense, another source said.

Italian Frozen Food Holding could command a 10-12x EBITDA valuation multiple based on its heritage, market positioning and financial shape, the first two sources familiar agreed, with the third source saying there is a "different buyer universe" for this asset.

Under the guidance of Mindful Capital Partners, Italian Frozen Food Holding has grown organically and via M&A, and now operates as market leader in Italy, said one of the sources. On the other hand, some suitors may be attracted to the whole company due to its breadth of products, the source suggested.

The list of those likely to look at the asset could include private equity firms with background in the food industry such as IDeA Taste of Italy, Riverside, Aksia, Aliante Partners, Consilum and Progressio, the first source familiar speculated.

International food companies that have exposure to the Italian frozen food market and have a portfolio of complementary products, such as McCormick and Conagra, could be among potential parties interested, the same source suggested.

Mindful Capital Partners – which rebranded from Mandarin Capital Partners in April – established Italian Frozen Food Holding in 2018 when it acquired frozen foods producers Appetais and AR, as per press reports.

In December 2019, Italian Frozen Food Holding acquired Italian frozen meals producer Alcass, which operates the Amica Natura brand, for an undisclosed sum; then, in October 2021, it bought Farma & Co, an Italian producer of gluten-free, frozen baked goods.

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