20 March 2002
Legal & General Ventures, one of Europe’s leading private equity firms, has sold its stake in Young’s Bluecrest to a company controlled by funds advised by Cap-Vest Limited and the management of Young’s Bluecrest in a secondary buy-out. The Company was sold debt-free in a transaction with a total value of £137 million.
Young’s Bluecrest is the largest processor of frozen, chilled and fresh seafood in the UK with a turnover of approximately £320 million. The company was formed in July 1999 from the merger of Bluecrest Seafood Limited, and Young’s. The merger was structured as a joint venture with funds managed by LGV (and its associates) and United Biscuits (the vendor of Young’s) taking equal shareholdings. LGV acquired United Biscuits’ shareholding twelve months ago.
Since the merger, Young’s Bluecrest has completed a programme of capital investment and factory rationalisation. The Young’s brand was re-launched in November 2000 with new packaging and products coupled with an extensive advertising programme. Today it has almost 30% of the total frozen and chilled seafood market with some of the UK’s best selling seafood products with brands such as "Young’s", "Chip Shop" and "Ross". Young’s Bluecrest was advised by Deutsche Bank.
Commenting on the sale, Michael O’Donnell, Director, LGV, said:
"LGV’s investment in Young’s Bluecrest played to many of our strengths. A consumer products business which combines own label and branded goods; a business in need of manufacturing rationalisation and brand investment; an opportunity to buy and build with a trade partner and most importantly; the opportunity to working alongside a committed management team with the ability to deliver results." Commenting on the transaction, Wynne Griffiths, Chief Executive, Young’s Bluecrest, said:
"The merger of Young’s and Bluecrest was a tremendous challenge for the management team. Considerable progress has been made and Young’s Bluecrest now ranks among the UK’s top food companies. The key to its success was the support from our customers, suppliers, employees and LGV, the private equity firm which gave us the opportunity in the first place and shared our vision for the business. We now look forward to continuing our work on the next stage in Young’s Bluecrest’s development."
