Private equity firm Lion Capital has shelved plans to sell the Nordic operations of Findus Group, according to reports.
There have been reports for months that Lion Capital was looking to sell Findus’s Nordic operations. The unit has been battling its debts for at least two years, and in January, Findus admitted it had asked lenders to delay another assessment of its debts as it looks to integrate its recent acquisition of UK firm Cumbrian Seafoods.
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Lion Capital will now look to inject up to GBP100m (US$156.9m) of capital into the operations in an effort to ease the debt of the UK-based frozen food maker, the Financial Times reported today.
Sources told the publication Lion Capital had drawn interest in the Nordic unit from several potential bidders including Nestlé and Norwegian consumer goods group Orkla, but a price could not be agreed.
According to the FT, Lion will seek to recapitalise by providing GBP75m to GBP100m of new funds that will pay down some of the group’s GBP700m debts, as well as reset some of the terms of the financing.
Findus made a net loss of GBP151.6m in 2010 after high interest payments for its net debt ate into operating profits.
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By GlobalDataIn addition to the business in the Nordic region, Lion’s Findus operations include UK division Young’s Seafood Ltd, which comprises the old Findus UK unit, Young’s Seafood and own-label supplier The Seafood Co, plus a business in France.
