A sale of the companies could fetch to EUR 512.6 million between them. (Photo: Young's/FIS)

Young's, The Seafood Company could be sold

The owner of Young's and The seafood Company is again considering selling the popular UK seafood brands to lower its debt. Owner Lion Capital has appointed advisers to review the two businesses.

Young's and The Seafood Company are both part of the frozen food group Findus.

Grimsby-based Young's recently hired top celebrity chef Jamie Oliver to give support to a range of sustainable frozen fish products including fish cakes and fish fingers made from pollock, a more sustainable alternative to cod.

As the UK's largest chilled fish supplier, The Seafood Company serves all of the major supermarkets with an array that covers smoked salmon, crab and other shellfish. It runs a site near Edinburgh dedicated to Waitrose and plants in Grimsby and Cromer, UKPA reports.

The two businesses provide work to about 3,200 people across 13 UK sites, including 230 involved in shellfish processing at Cromer.

A sale of the companies could fetch to GBP 450 million (EUR 512.6 million) between them.

The closure of certain sites is an option -- news which may trigger further concern among Cromer campaigners who will deliver a 6,000-plus signature petition to Young’s bosses at the Holt Road facility this week. They are asking Young’s to reconsider plans which could lead to the site’s closure and move of production all the way to Grimsby or Scotland, where the majority of Young's UK employees work.

North Norfolk MP Norman Lamb’s forthcoming meeting with Lion Capital may now become even more urgent. He has called on the firm to host a delegation of town and district council representatives; supporters hope to persuade Lion Capital that the Cromer crab brand could be a goldmine if its name is safeguarded and the company keeps production in the town, Norfolk Eastern Daily Press reports.

Young’s entered a 90-day consultation period a month ago with the 230 workers at its shellfish processing site in Cromer.

Lion Capital bought Findus in 2008 for GBP 1.1 billion (EUR 1.3 billion); and the latter has been up against climbing competition and costs in the fish market.

The group almost breached the covenants on its GBP 721 million (EUR 821.3 million) debts earlier in 2011 because of the harsh markets for fish and other frozen food, but was able to renegotiate its terms with more support from Lion Capital.

Earlier in October, Lion Capital also considered a sale of Findus's Nordic division, which generates about a third of the group's revenues. Findus generated a net loss of GBP 151.6 million (EUR 172.7 million) in its last financial year after dealing with high interest charges.

Related article:

- Young's Seafood plant enters 90-day consultation period

By Natalia Real
[email protected]
www.seafood.media

Address:	Ross House, Wickham Road
City:	Grimsby
State/ZIP:	England (DN31 3SW)
Country:	United Kingdom
Phone:	+44 1472 585 858
E-Mail:	[email protected]
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