Lion poised to take frozen-food maker Picard Surgeles

The two private equity firms made an announcement today, stating that Lion Capital has been granted a period of exclusivity for the purposes of reaching a definitive agreement for Picard.

The communication and consultation process with company representatives is expected to start before the end of the week.

In its most recent fiscal year, Picard generated over €1.1bn of total sales through its 820-store chain, selling self-branded frozen foods.

UK-based BC Partners bought Picard in 2004 for €1.3bn from rival Candover Partners.

Lion Capital is focusing its efforts on investing in the frozen foods market, a defensive sector that holds up during harsher economic periods.

The firm was courting Findus Italy, put up for auction by Unilever, last week, but was beaten by Permira-owned Birds Eye Iglo.

Rival private equity firms Clayton Dubilier & Rice, CVC Capital Partners, Cinven and Eurazeo were all named as parties interested in buying Picard Surgeles before Lion was granted exclusivity.

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