Private Equity Groups Fight for Findus
According to a number of people close to the process, reports Dow Jones, German private equity firm…According to a number of people close to the process, reports Dow Jones, German private equity firm Triton has indicated it wants to offer £305 million in a bid comprising £230 million in equity and £75 million in mezzanine finance.
Current owner Lion Capital and the company's mezzanine lenders have tabled an alternative proposal to keep control and pump in a further £220 million. Lion paid £1.1 billion for Findus - then called Foodvest - four years ago. The food group ran into trouble seven months ago.
A decision is expected at the end of this week when the company's senior creditors will vote on which proposal to back. Under Triton's plan, the existing £180 million mezzanine debt would be written off and Triton would provide £200 million of liquidity to repay senior debt.
Lion and the mezzanine investors want to inject £70 million in the form of a revolving credit facility and a £150 million subordinated payment-in-kind note. The mezzanine investors are also offering to repay £125 million of senior debt at par, or face value, as well as inject £25 million into the company.
Two sources told Dow Jones that the Findus board and the company's largest senior lenders are supporting a plan from Lion, which holds a stake in the mezzanine debt alongside JP Morgan and Highbridge Capital Management. One source said the Triton offer would either require approval from both senior and mezzanine lenders, or would need to go through a legal process and carries the risk of litigation from junior creditors. A second source said Triton had engaged law firm Latham & Watkins although talk of the risk of litigation had been "overplayed."
