Lion Capital drops plans to break up Findus

 Breaking News
  • European Commission Clears Bayer’s Acquisition of Monsanto The European Commission has approved under the EU Merger Regulation the $62.5 billion acquisition of Monsanto by Bayer. The merger is conditional on the divestiture of an extensive remedy package, which addresses the parties’ overlaps in seeds, pesticides and digital agriculture. Commissioner Margrethe Vestager, in charge of competition policy, says: “We have approved Bayer’s plans to [...]...
  • Management Plan to Fortify Fishing Sector in Western Mediterranean Sea The European Commission has proposed a multi-annual plan for fish stocks in the western Mediterranean Sea. The proposal covers demersal fish stocks, ie fish that live and feed at the bottom of the seabed, and bring a significant income to the fisheries sector in the region. According to the latest data, it is estimated that in 2015, [...]...
  • Major International Summit in Belfast to Tackle Escalating Problem of Food Integrity Food-security experts from all over the world will converge on Belfast from 28-31 May 2018 for a major Summit on how to feed a growing global population – amid massive challenges such as climate change, Brexit, labyrinthine food-supply chains and food fraud on a global scale. The Belfast Summit on Global Food Integrity will be chaired by Professor Chris Elliott [...]...
  • Cargill’s Launches De-oiled Rapeseed Lecithin Products In response to growing consumer demand for label-friendly ingredients, Cargill is introducing a new range of de-oiled lecithin products to complete its portfolio of GMO and non-GMO lecithin products.  A first to market in Europe, Cargill’s de-oiled rapeseed lecithin products help bakery and snacks manufacturers deliver the recognizable ingredient label that consumers want, at an [...]...
  • Tetra Pak Scoops Top Award For Manufacturing Excellence Tetra Pak’s packaging material factory in Izmir, Turkey, has received the world’s top award for manufacturing excellence. In doing so, it becomes only the 22nd factory worldwide to win the prestigious award in more than 40 years. Appraised by the Japan Institute of Plant Maintenance​, the World Class Total Production Maintenance (TPM) Award is presented to facilities that [...]...

Lion Capital drops plans to break up Findus

Lion Capital drops plans to break up Findus
March 14
12:02 2012

UK private equity firm Lion Capital has dropped its plans to sell the Nordic unit of Findus, after it was unable to reach an agreement over the price.

Frozen food maker Findus had attracted several potential buyers including Swiss food giant Nestlé, Norwegian consumer goods group Orkla, and seafood exporter Leroy Seafood, reported Financial Times citing people familiar with the matter.

The sale of the Nordic unit, which was being advised by investment bank Rothschild, was expected to fetch between €700m and €800m, which could have been used by Lion to lower Findus’ £721m debt.

Instead of selling the unit, Lion Capital will now seek to provide a capital injection of £75m to £100m, which will lower the debt and also reset some of the terms of the financing.

Findus is a branded frozen food manufacturer and owner of the Young’s seafood brand, with market leadership in Sweden, Norway and Finland in each of the fish, vegetables and frozen ready meals segments.

Its UK division has been struggling due to price pressures as supermarkets such as Tesco and Sainsbury’s compete to offer best prices, currency volatility, and the increasingly high cost of fish and other base ingredients.

Findus, which produces 345,000t of food annually from its 21 facilities, made a net loss of £151.6m in 2010, due to high interest payments for its £721m debt, which affected its operating profits.

Its Nordic business has however performed well: In 2010, the Nordic region accounted for nearly a third of Findus’s overall revenues of more than £1.1bn in 2010.

Last April, Findus entered into an agreement with the banks to relax covenants on its debt, as Lion Capital injected further equity to support its growth.

Lion Capital, which was formed following a spin-out from the troubled private equity firm Hicks Muse seven years ago, purchased Findus in late 2008 for £1.1bn.

To receive your free sample copy of Food & Drink Business News Europe please complete Form on our Subscription Page.

About Author



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
  • April 10, 2018EXPO XXI Warsaw International Expocentre
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here