The buy-out of Young’s Seafood by pork specialist Karro Food Group does far more than create the second largest ‘surf and turf’ entity in the 海角视频, it brings stability and head room to a business that is operationally buoyant.
Following the purchase of the slightly smaller Grimsby fish processing operation, Seachill, by the larger Hilton Food Group in 2017, the undisclosed acquisition that unites Malton, North Yorkshire, with North East Lincolnshire sees another growth-wary meat producer pounce on seafood - where untapped potential still sits.
Only fruit and vegetables benefit better from a must-eat-more mantra, instilled by health agencies and governments the world over.
But much closer to home, and in the upper floors of the maritime-themed Ross House docks base of Young's Seafood, the wrestling with historic debt from previous deals will be lifted, allowing a full focus on a proud operating track record.
It has taken some time to reach, well over a year since a bid notice was issued by investment house Lion Capital, together with finance partners Bain Capital and HPS ,in Luxembourg. That became public last April. It was marketed extensively privately before. Back in 2015, then chief James Hill told North Atlantic Seafood Forum - the annual Norway gathering of industry leaders - how a flotation or sale could be a possibility.
Now as the ink dries, there will naturally be a slightly guarded welcome. But this isn’t another equity house coming in blindly to build earnings. CapVest has experience from Karro, and several other food and drink interests in the portfolio, describes itself as a patient investor, and has knowledge of Young’s through its involvement with Foodvest, when Young’s and Findus came together.
As two tied food companies based in a region, it would be naive to think some synergies couldn’t be sought, and Karro’s sister business FJG Logistics could become an interesting element, with significant cold storage operations at Normanby Enterprise Park, north of Scunthorpe.
There is, perhaps, a question over US head Bill Showalter’s tenure, with Di Walker of Karro to steer the enlarged group.
Most Read
He has served for three years as chief executive, succeeding career Young's man Pete Ward, and it followed a similar length of time heading up the finances with the parent company. During that spell he saw through the £500 million sale of the European arm of Findus to Birds Eye-owner Nomad.
We await an answer, with the potential to have more operationally-focused figures reporting in to Walker should there be a departure.
Were he to head back across the pond, he wouldn’t be completely separated from what has been on his plate these past months.
Karro has strong international ambition aligned with Young’s for the US and China. Taking British provenance Stateside has been a big win for Grimsby’s biggest employer, while at home capacity for growth was also opened up earlier this year with the addition of the XPO Logistics base which adjoined its Humberstone Road factory.
New product offerings to attract new demographics, shave time off pressured mealtimes and drive the health agenda have become the norm with the seafood giant, a global leader when it comes to the fast moving consumer goods industry, never mind its sector.
It does, however, need a meticulous eye on the detail, with exposure to supply and price fluctuations, short shelf life and an uncertain future with the labour market - the latter at least will be familiar territory to Karro.
And while I don't anticipate immediate product pairings - though with the trend for sharing at a high - just like a scallop and chorizo risotto, pork terrine and sea bass fillet or a sausage and prawn BBQ - this looks like a winning combination.