UK meat giant The Boparan Group, which has outlined plans to buy Five Star Fish, is likely to invest further in the troubled business, with more of a focus on the retail channel.
The UK meat giant announced this morning (6 April) that it had acquired Five Star Fish, which entered administration last month due to concerns over the financial position of its parent company.
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Boparan said the deal will secure jobs, protect the future and provide a “stable backdrop for continued growth” for the firm.
A spokesperson for the firm told just-food that it would look to build on Five Star Fish’s existing base of retail clients, which includes Morrisons and Iceland.
“Initially Five Star Fish was a foodservice supplier, and in the past couple of years they’ve started to look a little more at the retail market and have picked up Morrisons and Iceland,” the spokesperson said.
“I would expect that as well as foodservice they’ll be looking closer at the retail market as well. And because there is a lot of extra capacity with this new facility…it’s a very well invested business to be buying into.”
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By GlobalDataThe spokesperson said Boparan’s record of investing in its operating companies, which also include UK poultry supplier 2 Sisters Food Group, meant it was likely to invest in Five Star Fish.
“I would definitely expect [further investment]. The 2 Sisters business has a history of ploughing money back in over the years, which is what has made it so successful so I can’t imagine that would change with this new business,” the spokesperson said.
Five Star Fish entered administration last month due to concerns over the financial position of its parent company British Seafood, which acquired the company for GBP35m in 2007.
Nevertheless, Boparan said it had no concerns about the acquisition, despite claims that Five Star Fish went into administration with a GBP150m (US$225.6m) hole in its finances.
“We can see, absolutely no holes in the Five Star accounts themselves – it’s a strong and profitable business that’s been standing on its own two feet throughout, and independent of the goings on at its previous parent,” the spokesperson said.
“British Seafood has a number of companies, one of which is Five Star Fish, that had gone into difficulties …but Five Star Fish is the jewel in the crown of British Seafood and one of the businesses that is making money,” the spokesperson added.
Boparan said the deal was a “strategic” move into the fish business after having been in the poultry business for so long.
“I think lessons that have been learnt in poultry processing that can also be applied to the fish business, certainly in terms of retail clients and delivering the best products at the best price,” the spokesperson said.
“The benefits of the business is that it’s got a brand new factory that was completed last year so it’s got spare capacity. It’s a very successful business even though it’s in administration in that it’s profitable and the turnover has been shooting up over the past years. So the plan is certainly to stick with it, invest in it and grow the business,” he added.
