Findus confident of strong future
By SeafoodSource staff
04 October, 2012
Completion of a GBP 220-million capital restructuring of the parent company behind Grimsby superbrand Young’s Seafood has been welcomed as providing a “strong platform from which to move forward.”
The finalization of a deal, which will strengthen the balance sheet and address debt issues at Findus Group, paves the way for an exciting future for Young’s, according to the executives at the head of the firm.
Findus, together with its lenders, completed a consensual restructuring with an investor group made up of Lion Capital, Highbridge Capital, JP Morgan and Northwest Mutual, a move reported by the Telegraph in July.
Under the terms, GBP 220 million has been made available to the business. A total of GBP 125 million will be used to repay debt and GBP 25 million will be retained as working capital.
It means lending will be reduced from GBP 721 million to GBP 366 million, leaving Findus with a “sensible and sustainable capital structure from which to build the business,” according to a statement from chief executive Chris Britton.
The investor group will also provide a GBP 70 million additional credit facility for the group, which employs nearly 2,000 people in the town.
Britton said: “With the business stable, fundamental growth drivers in each business, a new capital structure and very supportive stakeholders we can go forward with confidence. We can be excited for the future.”
Focusing in on Young’s, the seafood brand's chief executive, Leendert den Hollander, said: “2011 was a challenging year, as it was for every food business. Significant raw material inflation, along with other factors, placed increasing pressure on margins and profitability.”
Cost restructuring, growth stimulation and sustainability have been key planks of the past 18 months.
Click here to read the full story from the Grimsby Telegraph >
04 October, 2012