One of Young’s Seafood’s three PE investors is eyeing up a deal to buy out its co-owners after the proposed sale of the business to CapVest hit a major stumbling block.
The Grocer understands HPS Investments is now considering taking total control from co-owners Lion Capital and Bain Capital, following disagreements between the parties about the value of the supplier.
A deal for CapVest to buy the seafood specialist and bring it into its Karro Foods meat arm was in its “final stages” in November. The Grocer understands the process has stalled, with the PE buyer unwilling to match the owners’ valuation of the business.
The owners have come under pressure to complete a sale soon, with an August deadline to pay off significant Pay In Kind bonds looming.
It is understood CapVest is looking to purchase the company for less than £150m, significantly below the owners’ £200m asking price.
Meanwhile profits have returned to growth at the owner of Young’s Seafood, with EBITDA at Lion/Gem Luxembourg 3 S.à.r.l surging 13.3% to £23m in the full year to 30 September 2018.
HPS Investments and Young’s declined to comment on the sale process.