Permira to drop Iglo refinancing

Permira was understood to be considering the €500m refinancing option after the company's sale process fell through. The cost of the refinancing was deemed too steep, according to a source close to the situation.

The recapitalisation, which would have increased Iglo's debt to 5.5x EBITDA, was seen as a means for the GP to crystalise some of the company's value and pay out dividends to investors.

"We have taken the decision with Permira not to pursue Iglo Group's partial refinancing," said Iglo CEO Martin Glenn in a statement. "For us it is ‘business as usual', as we move forward on our strategy for the next phase of our growth. In Permira we have a very supportive owner, committed to building on our strong performance to date."

Permira bought Iglo from Unilever in 2006 in a deal worth €1.7bn. The GP then partly financed the company's €805m acquisition of Findus Italy from Unilever in 2010. Iglo generated a turnover of more than €1.1bn last year, selling products including fish fingers and frozen peas.

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