Nomad Foods formerly known as Nomad Holdings is engaged in acquisition negotiations with Findus Group, a U.K. based frozen-food producer with operations across Europe.

Findus Group Nomad Foods

Nomad Foods is a special purpose acquisition vehicle co-founded by Martin Franklin and Noam Gottesman. The company issued a statement indicating that the negotiations are focused on the continental European business of Findus Group.

According to the special purpose acquisition vehicle, its discussions with Findus Group are still in the preliminary stage. Nomad Foods said there was no guarantee that it will reach an agreement with the frozen food producer.

Nomad Foods recently completed its €2.6 billion acquisition of Iglo Foods Holdings, the maker of Birds Eye frozen vegetables. Iglo Foods is the world’s second largest manufacturer of frozen foods. Data from Euromonitor International showed that Iglo Foods accounted 3.3% of the frozen food market in 2014.

Market observers said combining Iglo Foods and Findus Group would create frozen food giant with products ranging from fish fingers, microwavable lasagna and peas.

Iglo Foods recorded €306 million in earnings before interest, tax, depreciation and amortization (EBITDA) and sales of approximately €1.5 billion last year.

Pershing Square invests in Nomad Foods

Pershing Square Capital Management, the hedge fund managed by activist investor, Bill Ackman acquired a 21.7% stake in Nomad Foods. Ackman admires Nomad Food’s co-founder Martin Franklin, who is focused on value-creating acquisition and capital allocation strategy.

Ackman said Franklin maintains high standards for quality and valuation of acquired businesses, focuses on the shareholder value creation, and uses debt and equity to finance acquisitions intelligently.

Bloomberg noted that the co-founders of Nomad Foods are recognized as dealmakers. Franklin established Jarden into a global consumer-products company with a market capitalization of approximately $10.36 billion.

On the other hand, Gottesman co-founded GLG Partners, which was sold to Man Group in 2010.

Nomad Foods stock trading still suspended

According to Nomad Foods, the trading of its stock on the London Stock Exchange (LSE) is still suspended. The suspension was implemented after the announcement of its acquisition of Iglo Foods in April.

Nomad Foods said it is seeking a readmission and a listing on the New York Stock Exchange. The shares of Nomad Foods gained approximately 80% since its initial public offering (IPO) in April last year. The stock closed $18.25 per share on April 28.