Samut Sakhon, Thailand-headquartered Thai Union Group PCL announced on October 10 that it has made a $575 million strategic investment in Red Lobster, the world’s largest seafood restaurant operator. The transaction gives it 25% ownership of the Orlando, Florida-headquartered company’s common shares and 24% of its preferred stock on a fully diluted basis. San Francisco-based Golden Gate Capital remains the majority owner and retains operational control of the business.
“Red Lobster is an iconic brand, with a leading market position in seafood casual dining and a world class management team, and has delivered strong performance since Golden Gate acquired the company [from Darden Restaurants] in 2014,” said Thiraphong Chansiri, chief executive officer of Thai Union. “This investment marks a strategic step to build our direct-to-consumer channel, and will enable us to benefit from the extensive restaurant industry expertise of both the Red Lobster management team and Golden Gate. We have worked closely with Red Lobster for over two decades and are highly supportive of the strategy it has implemented under Golden Gate’s ownership.”
With 40 years of industry experience, Thai Union is a leading international supplier of frozen and canned seafood products, including shrimp, lobster, sardines, mackerel, tuna, salmon and crab. It owns a number of well known seafood brands such as Chicken of the Sea, King Oscar, John West and Petit Navire, in addition to state-of-the-art processing facilities and packing plants in 12 countries.
“Thai Union is one of the largest and best-managed global seafood companies, and has been a trusted strategic supplier to Red Lobster for over 20 years,” said Kim Lopdrup, chief executive officer of the restaurant chain. “This close partnership will help accelerate Red Lobster’s strategy of being the best seafood specialist in every trade area we serve, bringing guests ‘sea-to-table’ quality seafood and a best-in-class dining experience at affordable prices.”
“We are pleased to welcome Thai Union as an investor in Red Lobster and look forward to leveraging their world-class supply chain and global presence and expertise,” said Josh Cohen, managing director at Golden Gate Capital.
J.P. Morgan acted as exclusive financial advisor to Thai Union in the transaction.
