Financiere Turenne Lafayette second round auction attracts more than ten suitors – report (translated)
23 FEB 2017
The second round auction of troubled privately owned food processing group Financière Turenne Lafayette has attracted more than ten parties, French daily Le Figaro reported, citing several sources. Turnaround funds, which could later sell the group piecemeal, are among the potential buyers, they added.
However, executor for the estate of Monique Piffaut, the now-deceased owner and head of the France-based company, said that the French government will not allow turnaround funds to acquire the company.
The report went on to say that a sale of Financière Turenne Lafayette by division is likely and could value the group at between EUR 200m and EUR 400m. A sale of the delicatessen and cooked meats division, including the Madrange and Paul Predault brands, is understood to have attracted the interest from competitors Bigard, Cooperl, and Fleury Michon, it added.
The Fresh pasta division, with revenues of about EUR 64m annually, is believed to be eyed by French supermarkets group Intermarché ITM.
The canned food division, which included brands such as William Saurin and could be worth between EUR 120m - EUR 150m if relaunched, is believed to be of interest to competitor D’Aucy (formerly known as Cecab).
Finally, the report said, without citing sources, that Brazilian meat giant JBS [BVMF:JBSS3], a German industrial food group and a consortium from China are also believed to be interested in acquiring the entire group, though they will have to quickly detail their intentions.
The French government and creditor banks have granted Financiere Turenne Lafayette a EUR 66m loan in order to finance the payment of wages and suppliers for a period of one year while the search for buyers goes on, the article said. Rothschild is the financial advisor for the sale while Accuracy is assisting with accounting.
A deal concerning most of the assets could be finalised by summer.
Financiere Turenne Lafayette has 3,200 employees in 21 production sites in France.