October 3, 2012

A major restructuring have been decided by Findus Group and its bankers that brings a GBP220 million (US$354 million) investment for the seafood group.

Findus Group, owner of the Young's Seafood brand, said the refinancing would both fortify Findus's balance sheet and give it "an appropriate capital structure from which to grow and develop."

An investor group of companies including Lion Capital, Highbridge Capital, JP Morgan and North western Mutual Capital fronted the cash, GBP125 million (US$201 million) of which will go to repay senior debt and GBP25 million (US$40 million) of which will be retained on the balance sheet as cash and an additional credit facility worth GBP70 million (US$113 million) also injected into the venture.

Findus chief executive Chris Britton said the conclusion of the restructure meant the company could be "excited for the future," The Grocer reports.

"With the business stable, fundamental growth drivers in each business, a new capital structure and very supportive stakeholders, we can go forward with confidence," he stated.

Private equity firm TriPointe Capital Partners will join the investor group on the board to provide "key governance interface," according to Findus. Dale Morrison, from New York-based private equity house TriPointe Capital Partners, will become non-executive chairperson.

The restructuring brings an end to the company's nine months of uncertainty. Findus found a way to avoid a breach of its banking covenants in early 2012 by negotiating with its lenders and after Lion provided it with new funds, The Telegraph reports.

In February, Findus was able to safeguard the terms of its GBP700 million (US$1.1 billion) debt when Lion Capital held discussions to split it up.

Findus has annual revenues of GBP1 billion (US$1.6 billion) and a 40% share of the UK chilled and frozen seafood market.