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TWO UK private equity houses who have major investments in the seafood industry could soon be battling it out for one of Italy's leading frozen fish companies.
Unilever has put its Findus Italy up for sale as it seeks to exit the frozen fish and food market altogether. Findus Italy is not related to the main Scandinavian and northern European Findus company owned by Lion Capital and which also owns Young's Seafood of Grimsby. However, it soon could become part of that growing family if the people at Lion get their way.
Lion is reported to be bidding for Findus Italy in the hope of adding the company to its stable, but it is likely to meet competition from another private equity business - Permira which bought Birds Eye from Findus over four years ago.
In European terms, Findus Italy is a medium sized player in the frozen seafood and frozen vegetable market - but an attractive one nevertheless. Last year its earnings before tax and depreciation etc totalled around 88 million euros - or some £74-million sterling. The business is likely to be sold for around ten times those figures.
Although Permira and Lion are leading the bidding, there is expected to be interest from other private equity houses.
Unilever will pick a short list of between three and four contenders before the bidding goes to the next round. The successful growth of companies like Findus and Young's and Birds Eye Iglo means that seafood has become an attractive target for private equity companies.
Private equity, along with other companies, are also eyeing up MW Brands, the business which makes the famous John West salmon and tuna canned products range.
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