Hibernia Foods, the NASDAQ-quoted frozen foods group, expects to raise $33 million (€32.8 million) in an equity investment which it says will fund an organic and acquisition-based expansion in Europe.
The firm also expects to use the money to make annual interest savings of $7 million when it is used to repay its secured subordinated notes.
In Europe, the company has plans to develop the Entenmann range of sweet cakes for which it holds the sole European licence extending to 51 states. Hibernia said it was also seeking acquisitions in the European market.
The firm's chief executive, Mr Oliver Murphy, has been granted some 4.25 million share options as part of the deal with the PanEuropean Food Fund, a Luxembourg-based investment fund which is placing more than $24 million with Hibernia, and three other European investors.
Some 2.44 million of Mr Murphy's options are exercisable immediately, at prices between $6.62 and $13.30, with the balance linked to the performance of the firm.
The Pan-European Food Fund was established last year by Food Equity Management, a fund management company which will also take board representation at Hibernia. The other investors in the deal are BG Bank, GIMV, and AXA Colonia.
