October 14, 2014 — Bumble Bee Seafoods LLC has attracted bids from companies including Mitsubishi Corp. (8058) and Post Holdings Inc. (POST) as its private-equity owner begins an auction of the tuna brand, people familiar with the matter said.
Lion Capital LLP, which acquired Bumble Bee from Centre Partners Management LLC in 2010 for $980 million, is seeking more than $1.5 billion for the business, said the people, who asked not to be named because discussions are private. About 12 consumer-products companies and private-equity firms expressed interest before today’s deadline for first-round bids, the people said, though it isn’t clear how many entered bids.
Thai Union Frozen Products Pcl (TUF), which owns competitor Chicken of the Sea, has submitted a bid, the people said. Hormel Foods Corp. (HRL) has also expressed interest in Bumble Bee and could end up bidding for the company, one of the people said. Bumble Bee, founded in 1899, is generating interest because food producers are trying to offer more protein options, said Kenneth Shea, an analyst with Bloomberg Intelligence.
“Protein is hot,” Shea said in a phone interview. “The scarcity of good brands could put Bumble Bee in demand.”
Thai Union shares rose as much as 2.8 percent in Bangkok, the most in more than a month. Mitsubishi fell 2.6 percent in Tokyo.
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