Funds advised by BC Partners and Lion Capital have reached an agreement whereby Lion Capital has been granted a period of exclusivity for the purposes of reaching a definitive agreement for Picard with BC Partners.
The communication and consultation process with employee representatives is expected to start before the end of the week.
Following the completion of this process, BC Partners will be able to enter into a formal agreement with Lion. This should result in completion of the transaction in the fourth quarter of 2010, after it has been approved by the European competition authorities.
Picard is a retailer in the French frozen food market, selling a wide range of product references through a network of 820 retailing outlets. The company’s product range covers all product categories, from starters to desserts and from raw ingredients to prepared meals. Picard also operates outlets in Italy.
Lyndon Lea, partner of Lion Capital, says: “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. 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. Lion is uniquely positioned to support Picard’s continued success through our strategic focus on high quality consumer brands and deep expertise within the food and retailing subsectors.”
André François-Poncet, managing partner of BC Partners, says: "Picard has become the undisputed leader of the frozen food market in France with a very strong network of stores throughout the country, innovative products and a recognized brand. We are proud to have contributed to its growth over almost six years. Despite a hard consumer environment in 2009, Picard continued to gain market share and has further significant growth opportunities in France and in Europe. We trust that Lion Capital will be a good partner for Picard in the future."
Philippe Pauze, chief executive of Picard, adds: “After several years of very constructive relationships with BC Partners, which I want to thank for their support, the management team would welcome the arrival of Lion Capital which has a very strong expertise in the food sector. With this new shareholder, Picard should be able to continue its profitable growth strategy and its development in France as well as abroad.”
