Lion Capital to sell UK seafood brands

Private equity firm Lion Capital plans to sell its UK seafood brands Young’s and the Seafood Company in an effort to reduce its debts.

The Seafood Company is a leading producer of chilled, private-label seafood products, while Young’s is a leading branded producer and distributor of seafood, and both brands are part of the frozen food group Findus, owned by Lion.

Together, the two businesses have a workforce of nearly 3,200 across 13 locations, and the sale is estimated to fetch about £450m ($718.88m).

Findus, which was acquired by Lion Capital in 2008 for £1.1bn ($1.75bn), has been struggling due to rising competition and costs in the fish market.

The group posted a net loss of £151.6m ($242.18m) last year after high interest payments for its £721m ($1.15bn) net debt.

In October, it was reported that Lion Capital planned to sell Findus’ Nordic business, which is estimated to be up to €1bn ($1.4bn) including debt.