Lion Capital in talks to split Findus

UK private equity firm Lion Capital is in talks with two strategic bidders over the break of the Nordic unit from Findus Group, a frozen food maker and owner of the Young’s seafood brand.

Findus is a leading branded frozen food manufacturer in the Nordic region, with market leadership in Sweden, Norway and Finland in each of the fish, vegetables and frozen ready meals segments, and is estimated to be valued at up to €1bn ($1.4bn) including debt.

Last year, the Nordic region accounted for nearly a third of Findus’s overall revenues of more than £1.1bn ($1.73bn), while the UK accounted for more than half.

A sale of the Nordic unit would allow Lion Capital to focus on restructuring the UK business, which has been struggling to cope with its upmarket products due to competitive pricing among retailers.

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 ($1.73bn).

Investment bank Rothschild is advising on the sale of Findus’ Nordic unit.