Far Eastern eye falls on frozen foods company

BIRDS Eye has followed Weetabix as the latest big household brand to attract takeover interest from the Far East.

Thai food manufacturer Charoen Pokphand Foods (CP Foods) is thought to be looking at a £2.5 billion swoop for the Birds Eye business, which has been put up for sale by the private equity firm Permira.

Earlier this month, British cereal stalwart Weetabix fell into the hands of China’s Bright Food in a deal valuing the firm at about £1.2bn.

According to reports, the Thai firm is up against private equity investors including BC Partners and Blackstone after first-round bids in the sale process were lodged on Friday.

CP Foods, which ranks as Thailand’s biggest food producer, with annual sales of about £6bn, has sizeable operations in Britain. Its main office is near Kidderminster and it has a factory at Newmarket, where it makes own-label food for supermarket chains including Tesco.

It is thought that CP is keen to expand Birds Eye in Asia and eastern Europe, where the frozen food market is smaller.

Feltham-based Iglo Group, which owns the Birds Eye brand, sold 2.2 billion fish fingers and generated £1.25bn in sales last year, including from other ranges such as frozen vegetables and chicken and rice dishes.

It is thought that CP may team up with another private equity firm in order to make an offer for all of Birds Eye.