Hostile take-over of Northern Foods on the cards
Published: 28 December, 2010
RANJIT Boparan, the Midlands businessman who swooped for two major fish companies earlier this year, has said that he is considering making a hostile takeover bid for Northern Foods.
Northern Foods used to be based in Hull but has since moved to Leeds. It has a small food production unit in Grimsby, and is one of the largest suppliers of 'own label' products to the large supermarket groups, including Marks & Spencer. The company is thought to be valued at around £300-million.
Northern Foods is currently discussing a merger with the Dublin-based Greencore food group which could now be in doubt if Mr Boparan pursues his bid. However, Northern has said it intends to continue with its Greencore merger plan which is expected to save around £40 million a year in costs.
In January Mr Boparan's company, Boparan Holdings Ltd, developed a taste for seafood when he bought the iconic Harry Ramsden fish restaurant chain in a multi million pound deal. Then in April he paid a reported £35-million for Five Star Fish of Grimsby which had briefly gone into administration following the collapse of its parent company British Seafood .It is thought he won Five Star against strong competition which included a German bidder. He also owns four former Fishworks seafood restaurants.
Up to then Mr Boparan was largely connected with the poultry industry through his Two Sisters operation, but these two deals marked his first venture into the seafood business which he said at the time he wanted to expand further. Now he is eyeing his biggest target yet - Northern Foods.
A somewhat cautious Stock Exchange announcement released by Boparan Holdings said its inquiries for Northern Foods were at a preliminary stage but it was evaluating a possible cash offer for the company. But it added that there could be no certainty that its evaluation would result is a definite bid being made.
