Findus Bailout Boosts Young's Prospects
Completion of a £220-million capital restructuring of the parent company behind Young's Seafood, the…Completion of a £220-million capital restructuring of the parent company behind Young's Seafood, the Findus Group. has been welcomed as providing a "strong platform from which to move forward."
Under the terms, £220-million has been made available to the business. A total of £125-million will be used to repay debt and £25-million will be retained as working capital. It means lending will be reduced from £721-million to £366-million, leaving Findus with a "sensible and sustainable
capital structure from which to build the business." according to a statement from its chief executive Chris Britton.
"With the business stable, fundamental growth drivers in each business, a new capital structure and very supportive stakeholders we can go forward with confidence. We can be excited for the future," said Britton. Young's chief executive, Leendert den Hollander, added: "2011 was a challenging year, as it was for every food business. Significant raw material inflation, along with other factors, placed increasing pressure on margins and
profitability." Cost restructuring, growth stimulation and sustainability have been key planks of the past 18 months.
Findus, together with its lenders, completed a consensual restructuring with an investor group made up of Lion Capital, Highbridge Capital, JP Morgan and Northwest Mutual. The investor group will also provide a £70-million additional credit facility for the group, which employs nearly 2,000 people in the town. "It allows us to invest in profitable growth for our business," said den Hollander. "The deal signals confidence in our plan for the
future and provides a strong platform from which to move forward. With a new capital structure and very supportive stakeholders we can go forward with confidence."
