The Real Good Food Company (RGFC) has sold its value-added fish unit, Five Star Fish, to British Seafood.

The two companies said today (11 June) that they have struck a deal for around GBP35m (US$68.8m).

Five Star Fish generates annual revenues of around GBP30m; operating profit for the year to 31 December totalled GBP4m, or almost 30% of RGFC's group profit.  

Commenting on the acquisition Mark Holyoake, chief executive of the privately-owned British Seafood, expressed his belief that Five Star Fish would flourish under British Seafood's ownership.

"I have admired this business for a number of years and feel that under our ownership the business can move to another level. It has a very exciting future with us," he said.

The deal is expected to close this week. RGFC said it intends to use the proceeds from the sale to reduce group debt.