Oct 10 Thai Union Group PCL, the world's
biggest producer of canned tuna, said on Monday it had bought a
minority stake in U.S. seafood chain Red Lobster Seafood
Restaurants for $575 million to expand in the United States, its
The company, known for its "Chicken of the Sea" tuna brand,
said it had taken a 25 percent interest in the restaurant chain,
with the option to acquire an additional 24 percent through the
conversion of preferred shares. (bit.ly/2dFD7To)
The Thai company paid $230 million for the 25 percent stake,
and $345 million for the preferred shares, which are convertible
to common stock within 10 years.
Private equity firm Golden Gate Capital will remain Red
Lobster's majority owner and retain operational control, Thai
Golden Gate Capital acquired Red Lobster for about $2.1
billion in July 2014 from Darden Inc, the parent of the
Olive Garden chain of restaurants.
Thai Union has been seeking to boost its business through
acquisitions after it scrapped a $1.5 billion deal to buy U.S.
rival Bumble Bee Seafoods in December.
The Thai company is a supplier to Red Lobster, as well as
Wal-Mart Stores Inc and Costco Wholesale Corp.
Thai Union bought Canadian lobster processor Les Pecheries
de Chez Nous for an undisclosed amount earlier this year.
(Reporting by Abhijith Ganapavaram in Bengaluru)