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GIANT fish finger producer Birds Eye Iglo has won the battle to buy one of the biggest European prizes in frozen fish and frozen food - Findus Italy. Birds Eye are owned by the private equity company Permira.
Anglo-Dutch consumer goods giant yesterday confirmed the sale of the business in a deal worth 805-million euros. James Hill, chairman of Unilever's Italian business, said: "Findus is the lynchpin of an attractive and profitable Frozen Foods business and I am confident that it will prosper under the dedicated resource and focused management that the new owners will bring.With this deal Unilever is now in a stronger position to focus on its core categories outside frozen foods and to achieve long-term growth in the Italian market." The deal remains subject to regulatory clearance from the EU.
The news will disappoint Lion Capital owners of Young's Seafood and Findus in the UK, Scandinavia and France ( no connection to Findus Italy) who were also keen to buy the business. Last week they were reported to be neck and neck with Birds Eye owners Permira in the race to take the prize.
Ironically, both Permira and Young's previous private equity owners Capvest locked horns in the battle for Birds Eye when Unilever put it up for sale over five years ago. Permira eventually won out when its £1.1 billion offer for Birds Eye was accepted by the Unilever board, but it was at the cost of over 400 fish jobs in Hull when the fish finger factory was closed.
Although profit margins are not huge by some standards, seafood companies are currently in demand because of their potential for long term growth. They are also taking on more of a pan European perspective.
Last week at the Humber Seafood summit Mark Escolme, managing director of Young's and Findus UK, strongly hinted that he was planning to expand the business. For its part, Birds Eye may well be floated on the London Stock Market within the next two or three years.
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